In cryptocurrency, a forger represents a node on a Proof-of-Stake (PoS) network that is chosen to add the next “block” or bundle of transaction data to the blockchain ledger.
“Proof-of-Stake” itself is a term that describes a type of consensus algorithm. On a blockchain network, consensus algorithms are used to confirm transactions.
In PoS-based cryptos, the creator of the next block is chosen through various combinations and parameters.
Ultimately, an individual person can mine or validate block transactions based on how many coins he or she holds.
They ensure that each block or bundle of data that is added to a blockchain (public ledger) is the singular version of the truth, which prevents fraudulent transactions and other kinds of tampering.
PoS algorithms do not select the nodes that confirm transactions based on how powerful their equipment is.
Instead, the nodes that confirm transactions are selected randomly from a pool of nodes that continuously hold or stake a certain amount of cryptocurrency in a network.
In other words, nodes are chosen to confirm transaction based on their wealth. These nodes are called forgers, or minters.
Most PoS networks have a limited number of crypto-coins, all of which are already in circulation.
Therefore, forgers do not receive rewards from an uncirculated supply. Instead, they receive payment in the form of transaction fees.
Forging is also believed to be more environmentally friendly than mining, given this strategy uses less computer power and therefore less electricity.
Moreover, there is also a greater incentive for forgers to keep the network fraud free, as any forger who validates a fraudulent transaction loses their stake and the right to forge.