How Does the Capital Expenditure (CAPEX) Model of PoW Differ from the Staking Model of PoS for Security?

PoW security is CAPEX-heavy, requiring massive upfront investment in specialized hardware (ASICs) and ongoing operational expenditure (OPEX) for electricity. This creates a high barrier to entry but allows for hash power rental.

PoS security is capital-heavy, requiring the locking up of native cryptocurrency (staking). This creates a high opportunity cost for the staker.

The PoS model converts the security cost from external hardware/energy to the internal value of the network's token and the risk of slashing.