Proof of Work (PoW) and Proof of Stake (PoS) are two different methods of securing a cryptocurrency network and validating transactions on the blockchain. PoW requires miners to solve complex mathematical problems, while PoS allows users to stake their coins.
The major difference between PoW and PoS is the way they determine who gets to validate a block of transactions. In PoW, miners compete to solve complex mathematical puzzles using their computer processing power. The first miner to solve the puzzle gets to validate the block and is rewarded with cryptocurrency.
In contrast, in PoS, participants are called validators. They don’t need to use powerful hardware to compete for the chance to validate a block. Instead, they need to stake (lock) the native cryptocurrency of the blockchain. The network then selects a winner based on the amount of crypto staked, who will be rewarded a proportion of the transaction fees from the block they validate. The more coins staked, the higher the chance to be chosen as a validator.