Should You Opt For Proof-Of-Work Or Proof-Of-Stake?

Should You Opt For Proof-Of-Work Or Proof-Of-Stake?

Decentralization is a special feature of most of the existing cryptocurrencies. It is one of the most significant benefits one can achieve from crypto. But the absence of a central authority to authenticate the transactions makes it challenging. A cryptocurrency wallet is an excellent way to safeguard your funds. Anyone can invest in cryptocurrencies, visit Ekrona for the best trading platform.

Bitcoin along with some other famous cryptocurrencies including Ethereum, Litecoin, and Bitcoin Cash, cope with this issue by utilizing the Proof-Of-Work Mechanism. The rest of the cryptocurrencies are using their alternative mechanism termed Proof-Of-Stake to overcome this problem. Consumption of energy is the thing that distinguishes both the mechanisms as the latter consumes low energy.

Proof-Of-Work (POW)

It is a system that contains the competition of computers to solve complex perplexes. A healthy competition occurs among all the computers to decide who will be the first one to solve these puzzles and attach the new blocks to the blockchain to get coins (usually Bitcoins) as a reward. 

Should You Opt For Proof-Of-Work Or Proof-Of-Stake

POW requires bulky investments in the energy sector, so it becomes extremely difficult for a bad actor to validate wrong transactions and to spend extra currency. Its energy utilization is contentious, and it is profound. That is why the masses are worried about the impacts of Bitcoin on the environment.

To ensure the strength and working of the network, you need more computers and more energy, as well, to run the system. Competition on the POW network asks for computing power, and that requires electrical power. Resultantly, there are chances of electricity wastage. Besides this, individuals are replacing obsolete systems with more sophisticated ones.

As its work is based on the competition of the miners, it is more autonomous.


  1. It is extremely safe and secure due to its operating cost.
  2. It is a wider and more autonomous network.
  3. It is the only approved mechanism that is according to the scale.
  4. It promotes healthy competition, which increases efficiency.
  5. The energy that would’ve gone wasted is utilized.


  1. An immense amount of electricity is required.
  2. It is causing Electronic Waste.
  3. Overall a slow mechanism
  4. It is easily traceable due to high energy consumption.

Proof-Of-Stake (POS)

It is similar to voting, but the slang of One Person, One Vote, is not implemented here. In a POS system, there is no competition among the miners, but their holdings decide which miner will search for and add a block to the network. Cryptocurrency holders vote for authorization of lawful transactions. Following their contributions, they earn newly developed cryptocurrencies.

A major benefit of the POS mechanism is that it does not require heavy-duty computers, so you do not have to make heavy investments in power provision, and resultantly very low amount of energy is consumed. It was established to overcome the drawback of high energy consumption and to reduce the operational cost.

Should You Opt For Proof-Of-Work Or Proof-Of-Stake

POS offers more robustness and output than that of POW because the verification and validation process is speedy, and you are not required to solve any puzzles. The major flaw in this system is that you might choose a validator having sums of money; the process will become less autonomous.


  1. It requires very little amount of electricity or power to run its operations, which makes it more efficient than POW.
  2. It involves no computing issues that make the transactions quicker; as a result, overall output increases.
  3. Validators are hard to find or to be traced due to low energy consumption, and they can continue their work.
  4. It has a less damaging effect on the environment.
  5. You do not need specialized hardware; you only have to pay the cost to buy tokens.


  1. It is approved only on a small scale and may take a lot of time for large-scale approval.
  2. In POS, you can hoard the coins that make it more centralized.
  3. It lacks the security of the transactions and can be tampered with.

Final Words

POW & POS are two significant domains of the blockchain network, and both of them differ in many perspectives including the consumption of energy, speed of transaction, democracy & autocracy, safety & security of transactions, and the impacts of both on the surroundings.

Although POS is not stable and secure at the moment, its popularity is gradually rising, and someday it might outperform the POW.

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