Intermediate

Proof of Work vs Proof of Stake: Consensus Explained

Consensus mechanisms are how blockchains agree on the truth. Here's how the two main types compare.

What is Consensus?

Distributed networks need a way to agree on which transactions are valid. Consensus mechanisms solve this without central authority.

Proof of Work (PoW)

Used by Bitcoin. Miners compete to solve complex puzzles using computational power.

  • Pros: Battle-tested, highly secure
  • Cons: High energy use, slower

Proof of Stake (PoS)

Used by Ethereum. Validators are chosen based on staked coins.

  • Pros: Energy efficient, faster
  • Cons: Newer, potential centralization

Comparison

FeaturePoWPoS
Energy UseHighLow
HardwareSpecializedStandard
Security ModelComputationEconomic