We already gave you all the heads up that you need when it comes to what the Proof of Stake and Proof of Work models are. Now, it’s time to wrap it up by stating the differences between these two models.

POW vs. POS! 

To start with, in the proof of work model, mining chances of a block depends on the miner’s computational work while in the proof of stake model, validating a certain block, especially new ones, depends on the numbers of coins a person stakes and holds. When it comes to reward systems, in the proof of work model, a block reward is granted to the miner who works out cryptographic puzzles. However, in the proof of stake model, validators don’t receive any rewards. On the other hand, they collect and receive transaction fees instead. In addition, and in order to solve the puzzles in the POW model, miners must compete against each other using computer processing powers. On the contrary, in the POS model, there are no competitions, but the creator of the block is picked out depending on user staking algorithms. 

 Hackers are involved too! 

When it comes to the POW model, hackers, and in order to add malevolent blocks, are requested to have 51% computation powers, while in the POS model, hackers need to win and own 51% of all cryptocurrencies out there, which is quite impossible, right? 

In addition, the POW model is less costly and less energy efficient but is more proven than the POS model, when the latter is costlier and more energy efficient. This is because special equipment is needed for POW processing powers, while regular servers are enough for the POS model. This leads to the fact the initial investments are required to buy these hardware and equipment in the POW model, while in the POS model, the initial investment needed is simply build reputation and buy stakes! 

Even though they differ! 

The two models are different, however, it is interesting to state that the POS was created as an alternative to the POW model. Bitcoin, for example, works under the proof of work model, even though POS is safer and more secure. There is no better model, but there is simply a model that works for some coins while doesn’t for others and vice versa!