POW(Proof Of Work) versus POS(Proof o Stake)


There are lots of ways to make money: You can earn it, find it, or counterfeit it. Or, if you are Satoshi Nakamoto, you can create it. In November 2008, a mysterious entity going with the persona “Satoshi Nakamoto” published a research paper outlining his design for a new digital currency that he called bitcoin.

We’ve come a long way from that time, with tons of new crypto currencies launching everyday along with the million dollar fund raising and ICO’s.

There is still a lot than meets the eye, the intricacies of the blockchain, security and smart contracts. Everyone is working to innovate blockchain and crypto currencies day in and day out. But, before beginning with anything else, before even beginning to invest in crypto currency, it’s a must thing that they what it means, what it does and how the future will benefit from it.

Hoping that the readers are already well aware with the basics of crypto currency, this article goes on to explain the proof of work and proof of stake in simple points.

Proof Of Work

The process of mining can be complicated and so different hardware is used to mine blocks such as:

· CPU Mining — Using a normal computer’s CPU to validate transactions in a proof of work consensus protocol.

· GPU Mining — This is not dissimilar to CPU mining, however, in this case, a graphics card is used. Graphics cards are more powerful whilst relatively using less electricity.

· Cloud Mining — Some miners rent out their processing power to other miners for an allotted period of time.

However, the drawback of this consensus mechanism is the massive resources it requires.

Proof Of Stake


1. Users can stake their tokens in order to be eligible to produce a block. (called a validator)

2. Those with most tokens have the highest chance to produce the block.

3. The validator receives the reward of transaction fees for each transaction made on their block.

There is a lot more than this, tons of methods and ways and programming styles and even more courses emerging on the web and in universities across the world. Go ahead, grab a course and never stop learning.


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