Most people in the cryptocurrency world are aware that network validation often comes in one of two forms: proof-of-work or proof-of-stake. There are others, but these systems are common and power many of the most popular blockchains. They take the same basic problem — verifying transactions — and solve it in unique ways. However, both offer different solutions to the ongoing debate over scaling. Does one have a true advantage over the other, or are they just different philosophies? We’ll take a look at both.
Most people have heard of Bitcoin (BTC) “miners,” but just what do they do? In essence, miners work competitively to solve complex math problems in order to secure transactions on the network. See, one of the biggest risks to a blockchain is something called a “double-spend” attack. This is when someone spends the same money twice. This isn’t often a problem with traditional currencies, but with digital currencies, a system is needed to make sure someone can’t send the same Bitcoin to multiple parties.
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