Tezos Proof-of-stake (PoS)

A blockchain is a linked list of blocks.
In Tezos, blocks to be added to the blockchain are agreed upon through a proof-of-stake consensus mechanism.
Proof-of-stake means that participants in the consensus algorithm are chosen in function of their stake.
In Tezos, a participant needs to have a minimum stake of 8,000 xtz(which is called a roll). If one does not have enough stake to participate on its own or does not want to set up the needed infrastructure, (s)he can use delegation.
Therefore, in Tezos, participants in the consensus algorithm are called delegates.
There are two roles a delegate can have: that of a baker, that is a delegate that creates blocks, or that of an endorser, that is a delegate that contributes in agreeing on a block by endorsing that block.

Baking rights and endorsing rights are determined at the beginning of a cycle (a chunk of blocks) by a follow-the-satoshi strategy starting from a random seed computed from information already found on blockchain.

To incentivize participation in the consensus algorithm, delegates are rewarded for their baking and endorsing.
As a counter-measure against double-baking or double-endorsement a security deposit is frozen from the delegate’s account.
The deposit is either released after a number of cycles or burnt in case of proven bad behaviour.

Source: tezos.gitlab.io

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