In a Proof of Trust system, users in a network gain trust as they participate in special activities within the network.
If a user tries to defraud the system, the trust is lost and they lose an equivalent amount in value (the cryptocurrency or token employed).
In a Proof of Trust system, “trust” is staked instead of tokens or coins.
Some Proof of Trust systems, such as COTI, combine Proof of Work and trust staking as a hybrid system of consensus.
Return to main article: ELI5 Summary of cryptocurrency consensus mechanisms