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I'll give it a try, but I'm by no means an expert in cryptography. Proof-of-work works (very broadly) by computers solving harder and harder math problems to c
by j-james 6y ago
I'll give it a try, but I'm by no means an expert in cryptography.
Proof-of-work works (very broadly) by computers solving harder and harder math problems to create value. Eventually, these get so hard that solving one requires either joining a pool or a huge investment in electricity and mining rigs - which is where we're at now. This isn't good for the environment.
Proof-of-stake works by individuals "staking" some of their own coins to be more likely to be randomly chosen to "validate" a transaction (which earns them a reward, similar to hashing). Validating a transaction is trivial and uses very little electricity, but the rest of the network also checking the transaction keeps the validator honest.
While proof-of-work and proof-of-stake are both a kind of "the rich get richer" game, to get more coins in proof-of-stake all that's required is a greater investment into the network, as opposed to the mining rigs and large amounts of electricity that are required by proof-of-work.
I found this video to be helpful in visualizing the networking parts of proof-of-stake.
https://www.youtube.com/watch?v=M3EFi_POhps https://www.youtube.com/watch?v=M3EFi_POhps
- runarberg 6y agoThank you, this was really helpful