We all hear these 2 definitions pretty damn frequently these days.
"But what do they represent ?" you may ask. In this post i' going to clarify what's the difference between these two.
PROOF OF WORK.
- Proof-of-Work coins (PoW coins) are secured by the miners. The best example of a Poof of work coin is Bitcoin. Bitcoin miners are using special software and powerful computers to make sure that all of the transactions are valid.
PROOF OF STAKE.
-Proof-of-Stake coins (PoS coins) are secured by the stakers.
-Stakers validate block transactions based on the number of staked coins.
-Proof-of-stake reduces the amount of energy and work to verify blocks and transactions.
-The owners offer their coins to validate blocks and then become validators after having stacked a certain amount of stacked coins.
-Blocks are validated by multiple validators, if they all get the transactions correct the block is closed
-Bocks are made of multiple transactions stacked together.
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