Proof-of-Stake (PoS)

Proof of Stake is a protocol created to deter cyber-attacks such as a distributed denial-of-service attack (DDoS) which has the purpose of exhausting the resources of a computer system by sending multiple fake requests.

Created as an alternative algorithm of Proof of Work, Proof of Stake holds a principle in which a miner can validate block transactions by as much as the number of digital coins he or she possesses. 

This algorithm is considered to be less risky in terms of the potential for miners to attack the network as it structures compensation in a way that makes an attack less advantageous for the miner.