What Is the Difference between PoW and Proof-of-Stake (PoS)?

Proof-of-Work (PoW) relies on computational power (hashing) to validate transactions and secure the network. Proof-of-Stake (PoS) relies on "staked" capital.

In PoS, validators are chosen to create new blocks based on the amount of coin they hold and are willing to "stake" as collateral. PoS is significantly more energy-efficient and has lower hardware requirements than PoW.