Both proof of work and proof of stake are consensus algorithms that are designed to achieve reliability in a network involving multiple unreliable nodes.
In Proof of work;
- The probability of mining a block depends upon how much work the miner does in the form of a computer solving an equation
- A block reward is given to the first miner who provides the solution to each equation
- Miners compete to be the first to find the solution
THE PROBLEM WITH POW IS THAT IT USES UP A LOT OF ENERGY.
Whereas, in Proof of stake;
- The probability of validating a new block is determined by how large of a stake a person deposits( how many coins they block from their balance)
- The validators do not receive a block reward, instead they collect fees as their reward