What Is the Difference between ‘Mining’ and ‘Staking’ in Cryptocurrency?
Mining (used in PoW) involves using computational power (hardware) to solve complex cryptographic puzzles (SHA-256) to validate transactions and create new blocks. Staking (used in Proof-of-Stake, PoS) involves locking up a cryptocurrency to participate in block validation and earn rewards.
Mining is energy-intensive; staking is capital-intensive.