Proof of Work vs Proof of Stake

PROOF OF WORK

Bitcoin Consensus mechanism is based on solving complex math calculations where the fastest computing device is awarded the block reward. This has lead to miner manufacturer’s designing and selling specialized ASIC (Application Specific Integrated Circuit) that require lots of power to reach the high speed of doing the calculations. Think in terms of each device as the equivalent of a 18,000 BTU Air Conditioning unit running all the time and even louder. The devices produce heat that has to cooled with huge fans and vented out of the building.

PROOF OF STAKE

Cardano Consensus mechanism is based on a complex math equation also, but it does not require high speed calculations. It uses a combination of factors like pool operator pledge (skin in the game), uptime, computer speed and random luck to determine the block award winner.