The way it works is that "validator" nodes confirm the blocks. The validators are randomly chosen based on the percentage they have staked.
You stake by owning the coin and locking it up using a staking mechanism tied into the protocol. This locks up your coins for a set period of time.
If a validator does not validate correctly or fakes the transactions then they run the risk of being "slashed". Slashing means they forfeit what they have invested.
Usually you need to stake $10K+ USD but there are also pools where people can combine their money.
Both pools and proof of work mining farms suffer from large groups consolidating the validation power.
One of the newer blockchains (Caradano) introduces the concept of a penalty for large pools in favor of having lots of smaller validators to make the network more resilient to a single group having too much validation power. This encourages decentralization.
The way it works is that "validator" nodes confirm the blocks. The validators are randomly chosen based on the percentage they have staked.
You stake by owning the coin and locking it up using a staking mechanism tied into the protocol. This locks up your coins for a set period of time.
If a validator does not validate correctly or fakes the transactions then they run the risk of being "slashed". Slashing means they forfeit what they have invested.
Usually you need to stake $10K+ USD but there are also pools where people can combine their money.
Both pools and proof of work mining farms suffer from large groups consolidating the validation power.
One of the newer blockchains (Caradano) introduces the concept of a penalty for large pools in favor of having lots of smaller validators to make the network more resilient to a single group having too much validation power. This encourages decentralization.