What is the difference between Proof of Work and Proof of Stake?

[uptrendfinancialsignal]

I was reading Proof of Work vs Proof of Stake and honestly it felt like two big grammar systems against each other. One is using machines and the other one is using coins. But both is still confusing at first glance. I even tried explain it to my friend and I mixed everything up. I feel like many people don't fully understanding it. They just go with what sounds better.

 

[Nomad]

I am not an expert on this topic but I do have basic understanding. Proof of work is a consensus mechanism in the crypto world where miners validate transactions. Proof of stake, on the other hand uses a consensus mechanism where users assets are used as collateral. The new blocks are created based on how much crypto asset they stake.

 

[Maya]

I see Proof of Work as relying on heavy computing power to secure the network (thus uses a lot of energy) while Proof of Stake feels more efficient since validators use their own coins instead. PoS seems more practical long term.