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What Is the Difference between ‘Mining’ and ‘Staking’ in Cryptocurrency?

Mining uses computational power (PoW) to validate blocks; Staking uses locked capital (PoS) to validate blocks and earn rewards.
Greeks.live04.12.25

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.

Explain the Difference between Proof-of-Work and Proof-of-Stake
How Does a Proof of Stake (PoS) Consensus Mechanism Differ from a Proof of Work (PoW) System?
What Is the Main Security Trade-off between PoW and PoS?
What Is the Primary Difference between PoW and Proof-of-Stake (PoS)?
What Is the Primary Difference between Proof-of-Work and Proof-of-Stake Consensus?
What Is the Difference between Proof-of-Work (PoW) and Proof-of-Stake (PoS)?
How Does PoA’S Reliance on Identity Differ from PoW’s Reliance on Computational Power?
How Does Proof-of-Stake (PoS) Replace the Mining-Based Block Reward?

Glossar

Cryptographic Puzzles

Mechanism ⎊ Cryptographic puzzles, within cryptocurrency and derivatives, represent computational problems designed to be difficult to solve but easy to verify, forming the bedrock of consensus mechanisms and secure transactions.

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