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What is Proof of Stake? - Earn Passive Income with StakingThe proof-of-stake model allows owners of a cryptocurrency to stake coins and create their own validator nodes. Staking is when you pledge your coins to be used. Proof-of-stake is a consensus mechanism for cryptocurrencies that allows for the processing of transactions and the creation of new blocks on a blockchain. A. Proof-of-stake is a cryptocurrency consensus mechanism for processing transactions and creating new blocks in a blockchain.