web3/concepts/proof-of-stake.md

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# Proof of Stake
A type of work function used in [blockchain](blockchain.md) [consensus algorithms](consensus-algorithm.md) that involves network participants [staking](staking.md) an amount of a [cryptoasset](cryptoasset.md) which grants them a probabilistic chance to confirm a block (and receive block award) in proportion to the amount of assets they stake.
Proof of stake has been criticized for being intentionally plutocratic and a scheme that overtly enriches those with existing wealth and early investors in the scheme, thus resulting in [consolidation](distribution-problem.md) of the [crypto asset](cryptoasset.md) into the hands of the few. Proof of stake has also been critized for having a less [censorship resistent](censorship-resistence.md) security model as it may encourage collusion and [cartels](cartel.md).
See also [mining](mining.md), [proof of work](proof-of-work.md), [environmental footprint of crypto](../claims/is-environmental-footprint.md).
## References
1. Rosenthal, David. n.d. Stanford Lecture on Cryptocurrency. Accessed 2 March 2022. https://blog.dshr.org/2022/02/ee380-talk.html.
1. Plant, Luke. 2022. The Technological Case against Bitcoin and Blockchain. Luke Plants Home Page. 5 March 2022. https://lukeplant.me.uk/blog/posts/the-technological-case-against-bitcoin-and-blockchain/.
1. Weaver, Nicholas. 2018. Blockchains and Cryptocurrencies: Burn It With Fire. Berkeley School of Information. https://www.youtube.com/watch?v=xCHab0dNnj4.
1. Schneier, Bruce. 2019. Theres No Good Reason to Trust Blockchain Technology. Wired Magazine. https://www.wired.com/story/theres-no-good-reason-to-trust-blockchain-technology/.