What is the difference between PoW and PoS?

Technology CommunityCategory: BlockchainWhat is the difference between PoW and PoS?
VietMX Staff asked 3 years ago

Proof of Work (POW) requires huge amounts of energy, with miners needing to sell their coins to ultimately foot the bill; Proof of Stake (PoS) gives mining power based on the percentage of coins held by a miner.

Proof of Stake (POS) is seen as less risky in terms of the potential for miners to attack the network, as it structures compensation in a way that makes an attack less advantageous for the miner.