Proof of Stake (PoS) is a blockchain consensus mechanism where participants “stake” native coins in validator nodes to secure the network. Just like PoW, validator nodes are randomly chosen (proportional to the amount of crypto and length of time staked) in a lottery to verify transactions and add the next block. The node is then rewarded by the network with a predetermined amount of native crypto.
Continue readingWhat is Proof of Work (PoW)?
Proof of Work commonly abbreviated as PoW is the original blockchain consensus mechanism which secures many cryptocurrencies such as Bitcoin, Litecoin and Monero. Proof of Work works by having Miners who utilize computer hardware to compete and solve mathematically complex puzzles in a lottery. The winning Miner is chosen randomly proportional to the amount of work completed and adds the next block of verified transactions into the blockchain. The Miner is then rewarded by the network with a predetermined amount of native crypto.
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