How does Ethereum proof of stake work?

Ethereum's proof of stake (PoS) is a consensus algorithm that secures the network through economic incentives. In PoS, validators stake ETH to participate in block validation, and are chosen randomly based on their stake to propose and validate new blocks. This process is more energy-efficient than proof of work and enhances scalability. Validators are rewarded for their contributions, while malicious behavior results in penalties.