Blockchain technology will revolutionize many industries since it provides decentralization, transparency, and security features. However, existing algorithms are not without challenges-that is, high power consumption, limited scalability, and vulnerability. This paper aims to propose a novel hybrid consensus algorithm based on a combination of Proof of Stake (PoS) and Proof of Elapsed Time (PoET). This innovative approach strives to surpass the current shortcomings and to improve the performance and security of blockchain systems. This proposed algorithm can balance the security, performance, and resource utilization features of the PoS-based energy efficiency and the PoET-based fairness and scalability. This paper shows the hybrid algorithm design and its mathematical modelling. Its operational flow and main elements are fully explained. An extensive simulation was performed to evaluate this proposed algorithm with other conventional consensus mechanisms such as PoW, PoA, and hybrid PoS + PoW regarding throughput, latency, scalability, and energy efficiency. Results showed that PoS + PoET improved performance on the blockchain to great heights with high throughput capabilities and scalability without affecting the security aspect. This study is very important for the development of energy-efficient and scalable blockchain solutions that can open up the application of blockchain technology in real-world applications. The results are expected to contribute to further research and development in sustainable blockchain ecosystems.