What’s The Difference Between Proof Of Work And Proof Of Stake?

3 min readFeb 21, 2022

Cryptocurrencies depend on blockchain technology to safeguard and validate transactions, and blockchain technology relies on consensus protocols to do so. Consensus protocols are a set of guidelines that miners must follow in order to keep a network operational and protect the blockchain from cyberattacks.

The most prevalent consensus mechanisms are proof of work (PoW) and proof of stake (PoS). Major cryptocurrencies use them to secure their networks.

Proof of Work (PoW) is used by Bitcoin, while KuCoin Community Chain (KCC) now uses Proof of Staked Authority (PoSA), which is more efficient, safe, and robust.


Different consensus mechanisms are used to verify that transactions recorded on a blockchain are valid. The oldest is Proof of Work (PoW). It was created by Satoshi Nakamoto and is widely regarded as one of the safest options. Although Proof of Stake (PoS) was developed later, it is currently used in almost all cryptocurrency projects.

The difference between PoW and PoS is explained here:

In the most basic terms, proof-of-work and proof-of-stake are two methods for mining cryptocurrency.

What does “proof-of-work” mean?

The Bitcoin network and many other cryptocurrencies use the Proof of Work (PoW) consensus method to avoid double-spending. Satoshi Nakamoto introduced it in the Bitcoin whitepaper, which was released in 2008.

PoW is the method through which the Bitcoin blockchain reaches distributed consensus. It’s used to trustlessly validate peer-to-peer transactions without the use of third-party middlemen.

Virtual miners from all around the world compete to be the first to solve a math challenge to protect and verify proof-of-work blockchains. The winner gets to update the blockchain with the most recent confirmed transactions and is rewarded with a certain amount of cryptocurrency by the network.

How Does Proof Of Stake (Pos) Work And What Is It?

Proof of Stake (PoS) is a consensus algorithm that was introduced as a replacement for Proof of Work in 2011. Its goal is to solve the scalability problems that concern PoW networks. Blockchains like KuCoin Community Chain use the second-most popular algorithm, PoS.

While both PoW and PoS aim to achieve blockchain consensus, PoS has a different method for determining who verifies a block of transactions. On PoS blockchains, there are no miners. Rather than competing for block validation abilities with strong computers, PoS validators rely on their crypto holdings.

Participants must lock a sufficient amount of coins in a certain smart contract on the blockchain to be eligible to validate a block. Staking is the term for this procedure. After that, the PoS protocol will allocate a participant to validate the following block. This pick can be made at random or based on the network’s assets, depending on the network (stake). As a reward, the chosen validator may get transaction fees from the block they validated. The more coins they lock up, the more likely they are to be chosen.

What Are Some Of The Differences Between Proof Of Work And Proof Of Stake?

One major difference between the two consensus mechanisms is energy usage. Proof-of-stake blockchains allow networks to run with much less resource usage since miners do not need to spend power on duplicative processes (competing to solve the same puzzle).

Proof of work allows network users to agree on which block to add by requiring them to spend a significant amount of computing resources and energy on generating new valid blocks. Proof of stake encourages network participants to put their money at stake in support of a new block they believe should be added to the chain.


Both Proof of Work and Proof of Stake has a role in the crypto ecosystem, and it’s difficult to determine which consensus process is more effective. Although PoW has been criticized for producing large levels of carbon pollution during mining, it has shown to be a secure algorithm for securing blockchain networks.

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I’m a crypto enthusiast and a digital marketing specialist.