Who gets to write the next page?
A blockchain is maintained by thousands of computers that do not know or trust each other. Something has to decide which one adds the next block, in a way that cannot be gamed.
Both answers work the same way underneath: make cheating cost more than it could ever earn. They just use different currencies for that cost.
Proof of work spends electricity. Proof of stake puts capital at risk. Everything else about the two systems follows from that one choice.
Five pages
Proof of work vs proof of stake
The two ways blocks get made
Read thisMining explained
How proof of work actually works
Read thisStaking explained
Earning by helping secure a network
Read thisValidators and nodes
Who actually runs a blockchain
Read thisLiquid staking and restaking
Staked assets that stay usable
Read thisThe differences that actually matter
| Proof of work | Proof of stake | |
|---|---|---|
| Security comes from | Electricity and hardware spent | Capital locked and at risk |
| To attack you need | More computing power than everyone else | A very large share of the token supply |
| Energy use | High and deliberate | Negligible by comparison |
| Barrier to participate | Specialized hardware and cheap power | Tokens, sometimes a large minimum |
| Punishment for cheating | Wasted electricity | Slashed stake, permanently destroyed |
| Issuance goes to | Miners | Validators and their delegators |
| Used by | Bitcoin, Litecoin, Monero, Dogecoin | Ethereum, Solana, Cardano, Avalanche, most newer chains |
Thinking about staking?
It looks like a savings account and it is not one. We go through lockups, slashing, validator selection and what actually happens if you need the funds back sooner than planned.