What is the difference between mining and staking?
Mining and staking are different ways to secure a blockchain and be rewarded for participating in the network.
• Mining (Proof-of-Work, PoW): involves performing complex calculations using hardware (Bitcoin, Litecoin).
• Staking (Proof-of-Stake, PoS): involves locking cryptocurrencies in the network to maintain its operation (Ethereum, Cardano, Solana).
Key differences:
✅ Mining requires expensive equipment, while staking only requires holding tokens.
✅ In staking, the more tokens you have, the greater the reward.
✅ Mining consumes electricity, while staking does not.
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