BlockchainIntermediate

Proof of work vs proof of stake: how they compare

Proof of work uses miners who race on hardware, while proof of stake uses validators who lock coins; Ethereum switched in 2022, and both have risks.

Vahe HakobyanEditor-in-chief Updated Oct 6, 20263 min readFact-checked

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How do the two methods compare?How do mining and staking work?Who runs each network?Where are they used today?What are the risks of each?FAQ

Key takeaways

Miners race to solve puzzles; validators are chosen by how much they stake.
Miners run hardware; validators are coin holders who stake their coins.
Bitcoin uses proof of work; Ethereum switched to proof of stake in 2022.
Proof of work uses a lot of energy; proof of stake can concentrate power.

Short answer

Proof of work and proof of stake are two ways a blockchain agrees on new blocks. Proof of work uses miners who race on hardware; proof of stake uses validators who lock coins.

Both make an attack costly, but they do it in different ways.

How do the two methods compare?

Proof of work spends computing effort and proof of stake puts coins at risk. Proof of stake is a family of consensus methods that pick validators in proportion to their coin holdings. The table below compares them on the same points.

Proof of work vs proof of stake
Criterion	Proof of work	Proof of stake
Method	Mining	Staking coins
Security	Computing work	Coins at stake
Example	Bitcoin	Ethereum since 2022

How do mining and staking work?

Miners race to add blocks, and their success matches the computing effort they spend. Validators are chosen by how much they stake, and they propose blocks and check other validators' work.

Who runs each network?

Miners run hardware to produce blocks on a proof-of-work chain. Validators are coin holders who stake coins and run software for a proof-of-stake chain.

Where are they used today?

Bitcoin uses proof of work. Ethereum switched to proof of stake in 2022, so older guides may be outdated.

Bitcoin runs on proof of work.
Ethereum used proof of work until 2022.
Ethereum has used proof of stake since 2022.

What are the risks of each?

Proof of work can use a lot of energy, and a group with most of the mining power can try to reverse transactions. Proof of stake can concentrate power among large holders, and validators can lose coins for misbehavior.

Proof of work needs costly hardware and power.
A group with most of the mining power can attack the chain.
Proof of stake can concentrate power among large holders.
Validators can be slashed for misbehavior.

Frequently asked questions

Yes. It avoids the computational cost of mining, so it uses far less energy.

Usually anyone who holds the required coins can try, but each network sets a minimum.

It is when one group gains most of the mining power or the stake. That group can try to reverse transactions or double-spend.

The validator misses rewards and can lose a small amount of ETH. Proven misbehavior leads to slashing.

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Written byVahe HakobyanVahe Hakobyan is the editor-in-chief of World-Crypt. He covers bitcoin, markets and regulation, and leads the newsroom that fact-checks every story before it goes live.