As with other blockchain [[Consensus Mechanism|consensus mechanisms]], the core purpose of Proof of Stake (PoS) is to automate the change of asset ownership across distributed computing networks. Like [[Proof of Work]] (PoW) blockchains, PoS systems keep conditions such that all transactions in a block are [[Finality|final]] and [[Immutability|irreversible]].
The key difference of PoS is in maintaining security and integrity of the blockchain. While there are varying implementations, consensus in this system is created using a computationally inexpensive method known as [[Staking|staking]], which allows owners of the system's underlying asset to lock up their funds (while receiving rewards for doing so).
The ability to validate blocks is now transferred to those with funds _at stake_, and their voting power is proportionate to the amount locked up. In this system, the proposed penalties for transaction reversal are a few orders of magnitude higher than the rewards. Attempts to reverse transactions would result in reduced network integrity, reducing the value of the underlying asset. As the economic value of the network is more intrinsically tied to its underlying asset, dishonest behavior is more discouraged in PoS blockchains than in PoW.