PoW?
This mining process is like a cryptographic puzzle and consumes great energy. Over time, the puzzle becomes easier and faster. The puzzle is revised every 14 days to make the competition harder. The PoW process though is highly secure is very costly due to the high computing energy requirement. All nodes need to validate the transaction which makes it highly scalable as well.The miners need to continuously update their software to solve difficult puzzles. PoW is somewhat centralized process since the mining rig needs to be organized to validate the transactions.
What is PoS?
PoS or Proof of Stake consensus algorithm, on the other hand, is a much simpler and cost-friendly process. It works with the Ethereum blockchain. Here the transaction validation process is called ‘forging’ and here stakers stake for their own set of nodes. Validators are rewarded for their effort.The larger the stake, the better are the chances of validation and the returns are high.
Read full post here: PoW vs PoS vs SPoS