Every blockchain relies on a consensus mechanism to validate transactions. Older blockchains, such as Bitcoin, use an energy-hungry proof-of-work consensus, while more recent blockchains, such as Electra Protocol, use an energy-friendly consensus, such as proof-of-stake (PoS).
Proof-of-stake protocols are a class of consensus mechanisms that work by selecting validators in proportion to their quantity of holdings in the associated cryptocurrency. For a blockchain transaction to be recognized, it must be appended to the blockchain. Validators carry out this appending; in most protocols, just like Electra Protocol, the validators receive a reward for doing so. For Electra Protocol to remain secure, it must have a mechanism to prevent a malicious user or group from taking over a majority of validation. PoS accomplishes this by requiring that validators have some quantity of XEP coins, requiring potential attackers to acquire a large fraction of the coins on the blockchain to mount an attack.