OUR BLOCKCHAIN VALIDATION PROCCESS
Proof of Work
The Digital Puzzle Solver
Imagine you’re in a race where you have to solve a super tricky puzzle. The first one to solve it gets a prize!
In Proof of Work, computers (called miners) race to solve a complex math problem. The first computer to solve it gets to add the next block of transactions to the blockchain and is rewarded with some cryptocurrency.
This race happens over and over, and because solving the puzzle takes a lot of computing power and energy, it’s called “Proof of Work”. It proves that the computer did the work to earn that reward.
Proof of Stake
The Digital Raffle
Imagine you’re in a raffle, where the more tickets you hold, the higher your chances of being picked to win a prize.
In Proof of Stake, instead of racing to solve puzzles like in Proof of Work, the system picks one computer (node) to add the next block to the blockchain. The more cryptocurrency a node is willing to “lock up” as stake, the more likely it is to be chosen.
It’s like having more raffle tickets because you put more on the line. The chosen node gets rewarded with transaction fees for adding the block. This method uses less energy and resources than Proof of Work.