This scheme is a hybrid of PoW and PoS. In this scheme, blocks are initially produced using PoW, but then each block randomly assigns three stakeholders that are required to digitally sign it. The validity of subsequent blocks is dependent on the successful signing of previously randomly chosen blocks.
There is, however, a possible issue known as the nothing at stake problem where it would be trivial to create a fork of the blockchain. This is possible because in PoW appropriate computational resources are required to mine whereas in PoS there is no such requirement; as a result, an attacker can try to mine on multiple chains using the same coin.
