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Proof of work
Proof of work is a consensus mechanism in which miners compete to solve a mathematical puzzle by trial and error, spending computing power and electricity. The winner adds the next block. Bitcoin uses it; Ethereum used it until 2022.
What it means for you. Rewriting a proof-of-work chain takes a majority of the network's computing power, so each block added after your payment makes it more costly to reverse. On a smaller chain with less computing power behind it, that majority costs less to assemble.
Sources: ethereum.org: Proof-of-work, ethereum.org: Consensus mechanisms, Bitcoin whitepaper (PDF), Satoshi Nakamoto, Bitcoin developer guide: Block chain, bitcoin.org: Frequently Asked Questions · checked 4 October 2026
Proof of stake
Proof of stake is a consensus mechanism in which validators lock up the network's coins as collateral to propose and approve blocks. Honest validators earn rewards; dishonest ones can lose part or all of their stake. Ethereum has used it since 2022.
What it means for you. On Ethereum, a payment reaches finality once two-thirds of staked ETH has attested to it; reversing it after that would mean destroying a large amount of ETH. If you stake through a service, its penalties come out of your coins.
Sources: ethereum.org: Proof-of-stake, ethereum.org: Consensus mechanisms · checked 4 October 2026