Cryptocurrency: Proof of Work Vs Proof of Stake

Cryptocurrency: Proof of Work Vs Proof of Stake

 Prerequisites: Basic knowledge of Blockchain technology and cryptocurrencies.
However, if you’re new to the segment, I would highly recommend you to go through this article or if you want to have a detailed understanding on the subject, then refer – Top Free Online Resources to Learn about Cryptocurrencies 

What is Proof of Work(PoW)?
Proof of Work(PoW) is a mechanism(called Mining) used by miners to verify the happening transactions on the blockchain network and earn rewards in the form of cryptocurrencies. Mining is a procedure of approving a transaction or block in a system by the procedure of complex algorithms to demonstrate and approve the accuracy of the transaction and subsequently add the new block to the chain. It also avoids the risk of double-spending (i.e. only one of the two simultaneous transactions will achieve consensus).  

What is Proof of Stake?

Proof of Stake is also a mechanism with the similar purpose as that of Proof of Work but it validates the transactions by deterministically picking the maker of the new block based upon his assets which are termed as ‘stake’...


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