Differentiate the Network Effect Drivers of Proof-of-Work (PoW) versus Proof-of-Stake (PoS)

PoW's network effect is primarily driven by the total computational power (hash rate) securing the network. A higher hash rate means greater security and trust, attracting more users.

PoS's network effect is driven by the total value staked. More staked value leads to higher economic security and greater confidence in the consensus mechanism, attracting more capital and users.