Proof-of-time vs proof-of-stake: How the two algorithms compare

cointelegraph.com:

Consensus algorithms are processes where validators (also known as nodes or miners) within a blockchain network agree on the current state of the network. This mainly entails agreeing on whether a transaction submitted by a validator is authentic. Fraudulent or inaccurate transactions are rejected by the network assuming all validators are acting fairly with no malicious intent. Validators are rewarded with cryptocurrency for submitting accurate and authentic transactions, whilst malicious actors are penalized depending on the consensus protocol. 

For example, in proof-of-work (PoW) networks like Bitcoin (BTC), validators have to spend energy via expensive hardware to validate transactions, and if successful, they gain new tokens. If they act maliciously they gain nothing and the loss comes from the wasted energy used in submitting the fraudulent or inaccurate transaction.

In proof-of-stake (PoS) users stake tokens and receive additional tokens for submitting authentic transactions, while losing a portion for submitting wrong transactions.

In proof-of-time (PoT) protocols the principle is the same, with validators receiving additional tokens for submitting authentic transactions but lose tokens for submitting inaccurate or malicious transactions.

While PoS and PoT share some similarities, they are two very different protocols.

PoS is a consensus algorithm that works by users staking their tokens as collateral by locking them into a smart contract. The system works by selecting a validator, also known as miners or nodes, to process a block of transactions. The validator has to validate the transactions inside the block to ensure that there is no inaccurate information contained within.

Next, the validator submits the block to