Proof of Work (PoW) Vs. Proof of Stake (PoS)

Proof of Work (PoW) and Proof of Stake (PoS) are the most popular consensus mechanisms for cryptocurrencies. PoW is the consensus mechanism adopted by Bitcoin. PoS was proposed as an alternative to PoW and is commonly used in smart contract blockchains such as Ethereum 2.0 and Cardano. 

PoW is a decentralized consensus mechanism that relies on participants solving advanced cryptographic puzzles to create new blocks, secure the network, and verify transactions. PoS serves a similar function to PoW’s mining in that it’s the process by which a network participant gets selected to add the latest batch of transactions to the blockchain and earn some crypto in exchange. Even though they achieve similar purposes, they are distinct in how they function.