Hello Crypto world,

Today, I’m going to tell you something important through my blog. The topic which I’m going to discuss has confused most of the people. So, in our today’s blog we’ll cover the points such as “Proof of Work” and “Proof of Stake.” This is a very interesting topic, so every crypto enthusiast must know it. So, let’s start with our topic.

A general knowledge is required to understand this topic. So, we’ll discuss first about the Miners and Mining process carried out in Cryptocurrency generation.

Who is a Miner?

A miner is a person who uses his computational power to solve a computational problem which allows them to form a new block of transactions after successfully validating it.

A miner gets reward in form of “Block reward” and “Transaction Fee” only if he solves the problem before other miners and validates the transaction successfully. It’s not a challenging task because miners use High GPU Graphics and Hardware to make this thing easier. They do it on a large scale by opening a “Mining Farm.” 

This is just a brief explanation of miners. I’ll drop a link below for further study.

Now, we’ll begin with our topic.


Proof of Work also known as POW was first successfully implemented and operated by Satoshi Nakamoto who introduced Bitcoin to the world. As prior we discussed the Miners and their work which got you to know about their process. In Proof of work, the same definition implies.

“Solving the Mathematical Problems by using high computational power to validate the transaction in a block is called Proof of Work.”

Mining new coins takes a lot of computing power resulting in high electricity usage. This happens because of the Proof of Work Algorithm. Even it takes a lot of money investment to start with Proof of Work mining. The systems, hardware, air coolers, coolants, space, maintenance, etc are required to start with POW. Satoshi Nakamoto used Proof of Work to secure the Bitcoin Blockchain and reach consensus between many nodes on a network. A consensus is a general Digital Agreement. Proof of Work is implemented on Bitcoin, Monero, Litecoin, Ethereum 1.0, Zcash, Vertcoin, etc.


Once POW is understood properly, we can dive deeper into Proof of Stake.


In Proof of Stake, there is no need of any heavy hardware or computational power required. It can be easily done via any type of Desktop computer and Laptop.

“A Proof of Stake is a concept in which a person can easily mine or validate blocks by investing a certain amount in the wallet as a safety deposit.”

This doesn’t mean that everybody can become a Validator of Proof of stake System. There are certain criteria which need to be adhered to by the person before starting with Proof of Stake concept. POS works on a lottery type system. To become a validator the node has to deposit a certain amount of coins into the network as ‘STAKE.’ If the amount deposited by you in your wallet is higher than other validators, then the chances of you are increased to perform a transaction. Even the selection depends on Coin age in your wallet. In short, if you hold coins for a longer time then your chance to get selected increases as well as the trust level too.

Proof of Stake effectively simulates the burning, so no real-world energy or resources are actually wasted. Anyone can do it through their personal Computer at home or anywhere. POS doesn’t have Miners but instead has validators and it doesn’t allow people to mine new blocks but instead ‘MINT’ or ‘FORGE’ new blocks.

Compared with Proof of Work, Proof of Stake requires less electricity because it doesn’t need any heavy computing system to run. It is also inexpensive and easy to do. The coins which run on Proof of Stake concepts are ReddCoin, Stratis, NAV coin, NEO, Ethereum 2.0, etc.

Here, the difference between POW and POS can be easily noted.



There’s still something important missing here.

Have you heard about the term 51% Attack?

If not, then don’t worry I’ll tell you about it.

What is 51% ATTACK?

In case of Proof of Work;

When a group of miners holds 51% or more than 51% of mining power then they can achieve some powers which can make this Decentralized system turn Centralized. The miners can –

·        Never confirm your transaction.

·        Block your transaction mid-way.

·        Even after confirmation they can reverse the transaction.

·        They can Double Spend the amount.

Current mining pool can be checked below.


Just imagine if any of these miners get combined and form a community of 51% then they can have the power to misuse the Blockchain system.

So, to avoid this type of attacks Proof of Stake is formed. Let’s check what happens in Proof of Stake concept.

In case of Proof of Stake;

Since, mining can’t be done here so the validator must have to stake 51% the total currency control. This means out of 100% BTC available in the world, the validator must have 51% of it of his own. Here, the power of unity won’t work like the mining pools have, which we discussed earlier. The amazing part is, when you deposit a certain amount as your Stake and start with the Proof of Stake concept, then you won’t get a transaction amount to be solved more than your stake. If you think of tampering or doing fraud in the block then all your Stake deposit will be lost. This makes POS’s 51% attack more expensive. It’s like calling trouble itself to ruin your nest.

So, here our blog comes to an end.✌

I hope the doubt between Proof of Work and Proof of Stake is cleared now.

Still have a doubt or query?😦

Connect to us via email or comment. We’ll definitely reply to your feedback.

Thank You.💓



  1. Beautiful description 💐💐💐👌

    1. Thank you so much for your comment. Keep supporting :)

    2. Thank you fo your feedback. :)