As the Sandbox virtual world is built on top of the Ethereum blockchain, it is secured by the proof-of-stake ([PoS](https://coinmarketcap.com/alexandria/glossary/proof-of-stake-pos)) consensus mechanism. The SAND token is a standard version [ERC-20](https://coinmarketcap.com/alexandria/glossary/erc-20) token, which means owners can stake it and benefit from staking rewards.
Unlike the proof-of-work ([PoW](https://coinmarketcap.com/alexandria/glossary/proof-of-work-pow)) consensus mechanism employed by the Bitcoin blockchain, PoS does not require vast amounts of electrical or computing power to validate transactions. It relies on stakeholders with the largest holdings in SAND tokens. The PoS consensus mechanism allows for a lot of diverse applications while still ensuring the security of staked funds.