How Does ‘Proof-of-Stake’ Reduce Energy Consumption Compared to PoW?

Proof-of-Stake (PoS) eliminates the need for miners to continuously perform energy-intensive computational work to solve cryptographic puzzles. Instead, block validators are chosen based on the amount of cryptocurrency they have staked and are willing to risk.

This process only requires minimal computational power to run the validation software. The security is based on economic commitment (staked capital) rather than raw energy expenditure, leading to vastly lower power usage.