{"id":39925,"date":"2022-02-21T15:59:31","date_gmt":"2022-02-21T14:59:31","guid":{"rendered":"https:\/\/www.coinpro.ch\/uncategorized\/infographic-proof-of-work-vs-proof-of-stake-a-comparison\/"},"modified":"2025-08-08T17:15:41","modified_gmt":"2025-08-08T15:15:41","slug":"infographic-proof-of-work-vs-proof-of-stake-a-comparison","status":"publish","type":"post","link":"https:\/\/www.coinpro.ch\/en\/insights-en\/infographic-proof-of-work-vs-proof-of-stake-a-comparison\/","title":{"rendered":"Infographic: Proof of Work vs. Proof of Stake \u2013 a Comparison"},"content":{"rendered":"

A key point of any blockchain is its scalability. In other words, the processing of transactions. The various approaches of the Proof of Work method on the one hand and the Proof of Stake method on the other have recently occupied the crypto community, especially due to the start of ETH 2.0 format<\/a>. The gradual switch to the new \u201cBeacon\u201d blockchain will in future lead to the use of the Proof-of-Work (PoW) consensus mechanism to the Proof of Stake (PoS) method mentioned above. Reason enough to ask the question: What are the actual differences between Proof of Work and Proof of Stake? <\/p>\n

\"Infographic
Infographic on the differences between Proof of Work and Proof of Stake<\/figcaption><\/figure>\n

Proof of Work and Proof of Stake: Different Creation of New Blocks in the \u201cChain\u201d<\/h2>\n

There are significant deviations between the procedures when it comes to adding more blocks to the blockchain. Proof of Work protocols such as Bitcoin, Litecoin and (so far) Ethereum work with a process that is as complex as it is energy-intensive when releasing blocks. Complex computing tasks have to be solved here, which are also associated with quite high costs. The task is solved by the miners in the network. The demands on computing power are considerable. The competition between miners for the distribution of tasks is leveraged in the Proof of Stake process by the system independently determining the manufacturers of the blocks. <\/p>\n

Blocks are created by the share of the currency held by currency owners in wallets (digital wallets). These are \u201cstaked\u201d, which means unlocked. Currency owners secure the system by confirming (validating) transactions with their currency holdings. While PoW miners receive rewards for block creation, PoS rewards are given via an interest system, so to speak. The amount of \u201cinterest\u201d varies depending on the system. The more shares investors hold, the higher the validated transaction volume can be. PoS blockchains therefore do not rely on mining<\/a> new coins when it comes to distributing rewards. Here, transaction fees are offered to the block manufacturers as compensation for their confirmation services. <\/p>\n