It is an acronym for Proof of Stake (PoS). Cryptocurrency owners can earn rewards through proof of possession in their wallet for a certain period of time.
This validation algorithm does not require the use of any mining equipment, and is notably used by enterprise-oriented cryptocurrencies such as NEO, Cardano or Tezos.
Some cryptocurrencies also offer similar rewards to Masternode administrators. The main advantages of Proof of Stake are that it avoids high energy consumption and offers a more scalable solution. This validation algorithm is still less secure and decentralized than the Proof Of Work algorithm.
