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The valuation ring is $\mathcal{O}=\{x\in K:|x|\le 1\}$, and $\mathfrak{m}=\{x\in K:|x|<1\}$ is an ideal by the ultrametric inequality. Its complement inside $\mathcal{O}$ consists exactly of elements of field absolute value one, whose inverses also lie in $\mathcal{O}$. Every proper ideal must avoid units and hence lie in $\mathfrak{m}$. Therefore $\mathfrak{m}$ is the unique maximal ideal: $\mathcal{O}$ is a local ring. Also its fraction field is $K$, since every nonzero element outside the ring has its inverse inside it.

If $z\in K$ is integral over $\mathcal{O}$, it satisfies a monic equation $z^n+a_{n-1}{z}^{n-1}+\cdots +a_0=0$ with $|a_i|\le 1$. Were $|z|>1$, the leading term would have strictly larger field absolute value than every other term, so the ultrametric inequality would prevent cancellation to zero. Thus $z\in \mathcal{O}$, proving the valuation ring is integrally closed.

For the ideal criterion, assume the valuation is nontrivial and write $v=-\log |\cdot |$. If its value group is discrete, normalize it to $\mathbb{Z}$ and choose a uniformizer $\pi$ of valuation one. In any nonzero ideal $I$, the nonnegative integer valuations have a least value $m$. Choose $a\in I$ of that value. For every $b\in I$, $v(b/a)\ge 0$, so $b\in a\mathcal{O}$. Hence $I=(a)=({\pi }^m)$ and $\mathcal{O}$ is a principal ideal domain.

Conversely, if $\mathcal{O}$ is a principal ideal domain, its nonzero maximal ideal is $(\pi )$. For every element $x$ of positive valuation, $x\in \mathfrak{m}$ implies $x=\pi y$ with $y\in \mathcal{O}$, so $v(x)\ge v(\pi )>0$. Thus $\gamma =v(\pi )$ is the least positive value. For any value $t$, subtract $\lfloor t/\gamma \rfloor \gamma$. The remainder belongs to the value group and lies in $[0,\gamma )$, so is zero. The value group is therefore $\gamma \mathbb{Z}$, and the valuation is discrete. We have proved the principal ideal criterion for a nontrivial rank-one valuation ring.

The nontriviality qualification matters under the standard definition of discrete valuation, which requires value group isomorphic to $\mathbb{Z}$. With the trivial field absolute value, $\mathcal{O}=K$ is still a principal ideal domain, but the value group is zero and there is no uniformizer. Thus the literal unrestricted equivalence has a field exception. If “discrete” instead includes the trivial value group as a discrete subgroup of $\mathbb{R}$, that exceptional case satisfies the equivalence too.