What are the differences between Proof of Work and Proof of Stake?

What are the differences between Proof of Work and Proof of Stake?

Proof of Work (PoW) requires miners to solve complex mathematical problems to validate transactions, while Proof of Stake (PoS) allows validators to create new blocks based on the number of coins they hold and are willing to 'stake'.

Which one is more energy-efficient?

Proof of Stake is generally more energy-efficient than Proof of Work because it doesn't require extensive computational power to validate transactions.

What are the security implications of each?

PoW is considered secure due to its high computational requirements, making attacks costly. PoS, while also secure, can be vulnerable to 'nothing at stake' problems, but newer mechanisms are addressing these issues.

Can you give examples of cryptocurrencies using each?

Bitcoin uses Proof of Work, while Ethereum has transitioned to Proof of Stake with its Ethereum 2.0 upgrade.

Which one is better for scalability?

Proof of Stake generally offers better scalability compared to Proof of Work, as it can handle more transactions per second without the need for intensive computational resources.