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Posted by: Jemne123
« on: 07. June 2023., 04:03:10 »Hi everyone, I’m a crypto newbie and I’m trying to understand the difference between proof-of-stake and proof-of-work consensus algorithms. I’ve heard that proof-of-work is very energy-intensive and harmful for the environment, while proof-of-stake is more energy-efficient and eco-friendly. Can someone explain to me how they work and why they have different environmental impacts? From what I’ve learned so far, proof-of-work requires miners to compete to solve complex mathematical problems and validate transactions on the blockchain. This consumes a lot of electricity and generates a lot of heat and waste. Proof-of-stake, on the other hand, requires validators to stake their coins and randomly select them to validate transactions on the blockchain. This consumes much less electricity and hardware, and rewards validators for holding their coins rather than spending them. Is this correct? Which one do you prefer and why?