What is proof of work in cryptocurrencies?

Proof of work is a technique used by cryptocurrencies to verify the accuracy of new transactions that are added to a blockchain. The decentralized networks used by cryptocurrencies and other defi applications lack any central governing authority, so they employ proof of work to ensure the integrity of new data. What Is Proof of Work?

How do cryptocurrencies work?

Cryptocurrencies do not have centralized gatekeepers to verify the accuracy of new transactions and data that are added to the blockchain. Instead, they rely on a distributed network of participants to validate incoming transactions and add them as new blocks on the chain.

What is proof-of-stake (PoS) & how does it work?

Proof-of-stake (POS) was created as an alternative to proof-of-work (POW), the original consensus mechanism used to validate transactions and open new blocks. While PoW mechanisms require miners to solve cryptographic puzzles, PoS mechanisms require validators to hold and stake tokens for the privilege of earning transaction fees.

What is a good example of a POS cryptocurrency?

For example, Ethereum's transition from PoW to PoS reduced the blockchain's energy consumption by 99.84%. The first cryptocurrency to adopt the PoS method was Peercoin. It was followed by Nxt, Blackcoin, and ShadowCoin soon after.