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How Does Proof-of-Stake (PoS) Differ from Proof-of-Work and Why Is It Preferred for Some Financial Applications?

PoS uses staked capital for security and validation, is more energy-efficient, and offers faster finality than PoW's computational competition.
Greeks.Live08.11.25

How Does Proof-of-Stake (PoS) Differ from Proof-of-Work and Why Is It Preferred for Some Financial Applications?

PoW requires miners to expend significant computational energy to solve a puzzle and validate blocks. PoS requires validators to lock up (stake) a certain amount of the native cryptocurrency to participate in validation.

PoS is preferred for some financial applications because it is significantly more energy-efficient, allows for faster transaction finality, and offers higher throughput. Its security relies on the economic stake of the validators rather than computational power.

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