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Venn Diagram

Proof of work requires miners to use computational power and energy to be the first to solve complex mathematical problems and receive block rewards, while proof of stake determines who can validate new blocks based on the wealth or stake they hold in the currency, with validators receiving transaction fees rather than block rewards, making proof of stake thousands of times more energy efficient.

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Lacorte Jr Merano
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147 views1 page

Venn Diagram

Proof of work requires miners to use computational power and energy to be the first to solve complex mathematical problems and receive block rewards, while proof of stake determines who can validate new blocks based on the wealth or stake they hold in the currency, with validators receiving transaction fees rather than block rewards, making proof of stake thousands of times more energy efficient.

Uploaded by

Lacorte Jr Merano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Create a Venn Diagram to compare and contrast the outcomes of proof of work and

proof of stake consensus.

Proof of Work Proof of Stake


Proof of stake, the creator
Proof of work isa a
Proof of Work (POW) of a new block is chosen in
requirement to define a
mining requires huge a deterministic way,
expensive computer
amounts of energy depending on its wealth,
calculation, also called
consumption to fuel also define as stake.
mining.
computational The PoS system there is no
A reward is a given to the
power; Proof of block reward so, the
first miner who solves each
Stake (PoS) gives miners take the
blocks problem.
mining power based transactions fees.
Network miners complete on the percentage of
Proof of Stake currencies
to be the first to find a coins held by a
can be several thousand
solution for the miner.
times more cost effective.
mathematical problem.

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