Crypto: PoS vs PoW

Crypto: PoS vs PoW
Comic book that my local comic store was giving away for free advertising around the company Crypterns

Okokok. I am very behind on my knowledge around crypto...I spoke to a manager recently during a happy hour which sparked me to want to learn more. :(

Below are some of my findings around the differences with Proof of Stake and Proof of Work. As well as a quick guide to crypto mining I felt was useful.

Proof of Work:

  • Original consensus mechanism to add new blocks in a blockchain.
  • Solves computational problems, receives crypto.
  • Requires high processing power.
  • Much purchase mining equipment, run indefinitely, pay fees.

Proof of Stake:

  • Alternative of Proof of Work.
  • Owners stake a specific number of coins as collateral to become a validator and have validator nodes. System randomly selects who gets to "mine".
  • Reduces computational work. May lose some of their stake due to slashing (if their node goes offline or validate a "bad" block).
  • Validators that stake more will have higher influence on earnings (transaction verification).

For more around crypto mining:

Anyways. Time to look into proof of staking my AXS, hehehe.

Additional Resources

Proof-of-Work vs. Proof-of-Stake: Which Is Better?
Proof-of-work and proof-of-stake are the most popular algorithms to secure and manage a blockchain, but they both have trade-offs.
Proof-of-Stake (PoS)
Proof-of-Stake (PoS) is a cryptocurrency consensus mechanism that requires you to stake coins, or set them aside, to be randomly selected as a validator.