What is Proof of Work?
Proof of Work is common in most blockchains, it's where people's computers solve a complex math problem.
First computer to solve it gets to add the block to the blockchain.
Whoever adds the block to the blockchain gets to keep the fees and a certain amount of that cryptocurrency.
What is Proof of Stake?
In Proof of Stake, the computer that adds the block is randomly selected and you have to deposit a certain amount of a currency.
The computer that adds the block gets a reward, but if a computer has a malicious block it loses some of its staked eth.
The computers also get rewards for not having malicious blocks.
It gets a small amount of that currency every six minutes.
Pros and Cons of poS (Proof of Stake)
- Pro: It is more energy efficient than Proof of Work
- Pro: It lets everyone use it compared to Proof of Work needing expensive equipment
- Con: Less used than Proof of Work
Pros and Cons of poW (Proof of Work)
- Con: Uses lot's of energy; pollution
- Pro: Lot's of other currencies to base on
- Con: Need expensive equipment to mine
Note: This is based on the Ethereum Proof of Stake Blockchain.