What are the differences between proof of stake and proof of work in Ethereum?

1 answers

• Nov 25, 2021 · 3 years ago
  Proof of stake (PoS) and proof of work (PoW) are two different consensus mechanisms used in Ethereum. PoW, which is currently used by Ethereum, requires miners to solve complex mathematical puzzles to validate transactions and add them to the blockchain. This process consumes a significant amount of computational power and energy. In contrast, PoS selects validators based on the number of coins they hold and their willingness to lock them up as collateral. Validators are chosen to create new blocks and validate transactions based on their stake in the network. This mechanism is more energy-efficient compared to PoW. However, PoS introduces new challenges, such as the possibility of a 51% attack if a single entity controls the majority of the stake. Scalability is also a concern with PoS, as the number of validators that can participate in block creation is limited. Ethereum is planning to transition from PoW to PoS with the upcoming Ethereum 2.0 upgrade, which aims to address these challenges and improve the network's scalability and energy efficiency.
  1068534