#UpdateAlert
DIFFERENCE BETWEEN PROOF OF WORK (POW) & PROOF OF STAKE (POS)
⚙️ Proof of Work (PoW)
How it works: Miners solve complex mathematical puzzles to validate transactions and add new blocks.
Energy use: High — requires significant computing power (e.g., Bitcoin).
Security: Strong but costly; 51% attacks are difficult but possible.
Hardware needed: Specialized mining rigs (ASICs, GPUs).
Rewards: Miners are rewarded with newly minted coins + transaction fees.
🧿 Proof of Stake (PoS)
How it works: Validators are selected to create blocks based on the amount of cryptocurrency they “stake” (lock up).
Energy use: Low — no need for high-power hardware.
Security: Economically driven — malicious behavior results in slashing (loss of stake).
Hardware needed: Standard computers or servers.
Rewards: Validators earn transaction fees + sometimes newly minted coins.
📝 Summary:
PoW is secure but energy-intensive.
PoS is more sustainable and accessible.
Ethereum’s move from PoW to PoS (via the Merge) marked a major shift toward eco-friendly blockchain consensus.
