Crypto: PoS vs PoW
![Crypto: PoS vs PoW](/content/images/size/w2000/2022/04/crypterns.jpg)
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.
![](https://www.itspersonal.day/content/images/2022/04/image.png)
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.
![](https://blockworks.co/wp-content/uploads/2022/02/My-project-5.jpg)
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.
![](https://www.investopedia.com/thmb/FIVhFgHx2EDzqWF-xau7cy_9zOo=/680x453/filters:fill(auto,1)/shutterstock373543888vc-5bfc2b2dc9e77c005143e0d5.jpg)
https://www.coinbase.com/learn/crypto-basics/what-is-proof-of-work-or-proof-of-stake