A transaction validator in a Proof-of-stake system must verify ownership of a certain asset to participate in transaction validation. In the case of cryptocurrencies, a transaction validator, for example, will be required to show his interest in all existing documents before being permitted to confirm a transaction. In the process, the blocks are forged or minted but not ‘mined’.

He will have a strong potential of validating the next block depending on how many coins he owns; this is because he has more history within the network, granting him a more recognized status. The transaction parties reward the transaction validator with a transaction fee for his work.

Proof-of-stake is intended to address the problems about scalability and environmental sustainability that plague Proof-of-work.