Relatively new to crypto. Got a loose understanding of the systems.

Trying to differentiate the two but I’m kinda stuck on something. I understand that mining is more energy intensive, as they’re using mining rigs to process transactions.

My confusion stems from how that differs from POS where you still end up using a computer to process transactions. There just happens to be an extra step (32ETH). Which, I guess I should ask just to be sure - are those 32 ETH just parked somewhere as collateral or is it used as part of a liquidity pool?

Of course penalties keep validators in line, but wouldn’t that imply that btc miners have the capability to misbehave in a similar manner to a bad validator (even though they have no stake)?

To me the two methods seem nearly identical. What am I missing ?

  • TCr0wn@alien.topBEnglish
    1·
    1 year ago

    PoW - Hardware miner machines PoS - supply inflates via coins sitting in wallets staked

    • Njaa@alien.topBEnglish
      1·
      1 year ago

      If that’s your take, it is certainly interesting that the biggest PoW project (Bitcoin) is inflationary, while the biggest PoS project (Ethereum) is deflationary.