How Does the ‘Proof-of-Stake’ Consensus Mechanism Change the Energy Consumption and Regional Attractiveness Compared to ‘Proof-of-Work’?
Proof-of-Stake (PoS) significantly reduces energy consumption by replacing energy-intensive computational work with the staking of existing coins to validate transactions. This drastically lowers the importance of cheap electricity, making regional attractiveness less dependent on power costs.
Instead, PoS attractiveness shifts towards regions with favorable regulatory environments for staking and secure internet infrastructure.