Why is PoS getting more popular?
PoS, PoW, and PoH are consensus mechanisms designed to help blockchains agree on a single, secure state. They differ in how they reach that agreement, impacting speed, security, and costs. In 2025, PoS has become increasingly popular. In this article, we explore why.
What is PoW?
PoW is the original consensus mechanism used by Bitcoin. It secures the network by requiring miners to solve cryptographic puzzles before a block is added to the chain. This process, known as mining, demands significant computational power, which leads to high energy consumption and naturally favors operators with large-scale hardware resources.
Because miners compete to find the next valid block, the system tends to concentrate power among well-capitalized entities that can run vast mining operations. Even so, PoW delivers strong security. Every block is the result of verifiable computation, and the network can independently confirm the validity of each solution without relying on trust between participants.
This model stands in sharp contrast to Proof of Stake, which relies on staked cryptocurrency rather than raw computation.
What is PoS?
Proof-of-Stake (PoS) networks are blockchains that secure their consensus through staking rather than energy-intensive mining. PoS reduces the need for computational power by using randomly selected validators to confirm transactions and create new blocks, lowering energy consumption.
Example: Ethereum's switch from PoW (Proof-of-Work) to PoS reduced its energy usage by 99.84%.
PoS architectures help create a more accessible environment for users, developers, and institutions. With strong incentive models and transparent on-chain data, PoS networks form the backbone of the modern Web3 economy.
Examples of PoS networks
Next to Ethereum, some of the most famous blockchains are classified PoS:
- Solana: combining PoS and PoH for high transaction speed
- Cosmos Hub: using a PoS consensus mechanism to secure the network and validate transactions
- Zilliqa: transitioning to PoS with its 2.0 upgrade
- Sui: specifically includes the Narwhal mempool and Bullshark consensus protocol
Moonlet supports these networks with enterprise-grade validator nodes, AI-powered monitoring, and non-custodial staking tools.
What is PoH?
PoH (Proof-of-History) is often described as Solana’s secret ingredient. It’s not exclusively used by Solana, but it was developed by Solana Labs and is most prominently used by the Solana blockchain.
It isn’t a consensus algorithm. It acts as a cryptographic clock that provides every validator with a consistent and verifiable sequence of time. This helps the network agree on the relative order of events without relying on external clocks or constant coordination between nodes.
The system runs a verifiable delay function that generates a continuous chain of hashes. Each new hash proves that a specific amount of time has passed since the previous one. Transactions and other data are inserted into this sequence, creating an immutable record of ordering. Nodes can verify the position of any event by checking its place in the hash chain.
This timekeeping layer is what keeps Solana fast. Without PoH, validators would need to communicate far more to agree on timestamps and ordering, slowing the network considerably. With PoH, validators share the same reference timeline, allowing Proof of Stake to finalize blocks quickly while maintaining strong security guarantees.
Why is PoS getting more popular?
PoS is becoming the preferred model for new blockchains because it addresses many of the limitations seen in PoW systems. It offers a more energy-efficient and accessible path to securing a network, which aligns with the expectations of users, developers, and institutional partners.
Energy efficiency
PoS reduces the environmental impact of blockchain networks. When Ethereum moved from PoW to PoS in 2022, its energy usage dropped by roughly 99 percent. This shift showed how effective PoS can be in cutting resource consumption while still maintaining strong security guarantees.
Accessibility
PoS makes participation easier for a wider group of users. Running a validator no longer requires specialized hardware. Instead, the requirement is a financial stake in the network. This lowers barriers to entry and encourages broader decentralization.
Scalability and evolution
PoS networks are built with future growth in mind. They can support upgrades such as sharding, which increase throughput and help the network scale as demand rises. These capabilities are difficult to achieve with PoW architectures.
Growing ecosystem support
Users and investors are increasingly choosing PoS networks because they value sustainable infrastructure. Staking is now integrated into major platforms, allowing users to participate with only a few clicks. By late 2024, more than 130 billion dollars were staked across PoS networks, a sign of strong confidence in this model.
Further reading:
https://www.investopedia.com/terms/p/proof-stake-pos.asp
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