Proof of stake (PoS) and proof of work (PoW) are two consensus mechanisms used to validate transactions on a blockchain network. They both serve the same purpose but achieve it in fundamentally different ways.
Proof of Work (PoW)
• Requires miners to solve complex cryptographic puzzles to validate transactions and add new blocks to the blockchain.
• The miner who solves the puzzle first gets to add the block and earn a block reward.
• This process is computationally expensive and consumes a lot of energy.
Proof of Stake (PoS)
• Validators are chosen based on the amount of cryptocurrency they hold (their stake) in the network.
• Validators are responsible for validating transactions and adding new blocks to the blockchain.
• The chance of being chosen as a validator is proportional to the size of a validator’s stake.
• PoS is mostly considered to be more energy-efficient than PoW.
So which one is better?. Let’s take a look at the column and you decide.
Feature Proof of work Proof of stake
Energy High Low (0%)
consumption :
Security : High Moderate
Scalability: Limited Better
Decentralization: Decentralized Decentralized
