📚 DAY 4 - Learn all Crypto terms in 30 days
👉Proof of Work (PoW)
A consensus mechanism that requires computers to compete to solve complex problems to verify transactions.
For example: Bitcoin uses PoW, miners solve problems to record new transactions on the blockchain.
👉Proof of Stake (PoS)
A consensus mechanism that allows coin holders to stake their coins for a chance to validate transactions and earn rewards.
For example: Ethereum after "The Merge" transitioned from PoW to PoS, staking 32 ETH to become a validator.
👉Validator
A person/node in the network responsible for checking and verifying transactions on the PoS blockchain.
For example: Validators on Ethereum confirm new blocks and receive rewards in ETH.
👉Halving
An event that reduces the block reward of a blockchain by half, usually occurring periodically.
For example: Bitcoin undergoes halving every 210,000 blocks (~4 years) – from 12.5 BTC to 6.25 BTC/block.
