Consensus model for block chains. Members of the network are selected at random by weighted random selection, who are allowed to generate the next block.
The Proof of Stake mechanism is a form of the so-called consensus mechanisms for achieving consensus in the network and jointly agreeing on an identical version of the block chain.
The decisive factor is the stake of a user, i.e. the share of the total amount of tokens that he owns. The larger the share, the more likely it is that this user will be selected to mine the next block. Roughly speaking, the proof-of-stake mechanism is more comparable to a stock corporation than proof of work - whoever owns a larger share in the company usually receives more voting rights that entitle him to make decisions.
An important difference is, however, that the proof-of-stake mechanism uses a random algorithm to build consensus in a block chain network. This draws a participant, who then has the right to mine the block. Put simply, each token is a winning ticket - consequently, users with a higher stake (= more winning tickets) have a higher probability of being selected. More precisely, proof-of-stake mining is referred to as forging.
What is the difference between Proof of Work and Proof of Stake?
Proof of Work
The proportion of computing capacity in the entire network of miners is decisive for the probability of successfully mining a block.
Proof of Stake
The proportion of tokens in the entire network of miners is decisive for the probability of successfully mining a block.
Mining a block usually involves using hash functions to find a specific value. Since the hash functions are not reversible, it is not easy to calculate which X you have to put into the function to get the desired Y. Instead, the miners solve the problem by trying out many values (see also Proof of Work). Although there are different types of these calculations, the following analogy can be used in a simplified way:
"Find a hash value that meets the given properties"
The more stringent the desired properties are, the more difficult it is to find a value that meets all these requirements. However, in proof-of-stake we influence the difficulty with a user's stake - the higher the stake, the lower the requirements for the result. This makes it easier for users with higher stakes to meet results with these characteristics.
Mathematically, this problem can be imagined as follows (simplified):
Search space = [0, 50 + 5*stack]
The miner must find a result that is in the range of 0 and 50+5*stake. If the user has a stake of 0, the search space is very small, in this example more precisely between 0 and 50.
If the user has a stake of 10, the search space is extended to the interval from 0 to 550, which means that there are considerably more favourable results and the user has a higher probability of finding such a random result. For this reason, the probability of success with the proof-of-stake mechanism depends on the size of the stake and analogously reflects the idea of a company share with voting rights.
