Proof of Work vs Proof of Stake Comparison
Understand the differences between two blockchain consensus mechanisms: Proof of Work (PoW) and Proof of Stake (PoS).
| Criteria | Proof of Work (PoW) | Proof of Stake (PoS) |
|---|---|---|
| Consensus Basis | Computational work by miners | Ownership or staking of coins |
| Energy Efficiency | Low (very high energy consumption) | High (minimal energy use) |
| Security | Proven, but vulnerable to 51% attacks | Secured via stake penalties and lockups |
| Cost of Participation | High (hardware, electricity) | Lower (just hold/stake coins) |
| Decentralization Risk | Hardware centralization risk | Wealth centralization risk |
| Examples | Bitcoin (BTC), Litecoin (LTC) | Ethereum (ETH), Cardano (ADA) |