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What’s the Difference Between Staking & PoS in Cryptocurrency?

Here in this guide, I will be explaining the difference between Staking & PoS in Cryptocurrency that will require a lot of de
Here in this guide, I will be explaining the difference between Staking & PoS in Cryptocurrency that will require a lot of details to talk about.

Crypto Mining Yields: Everyone knows that crypto is the booming currency since it got started, but a lot of you probably don’t about the mining process, which is quite popular in the blockchain. Crypto Mining Yields could be a long process if your new into you will get to know every about Mining and POS (Proof Of Stake).

Getting Started with basics of Mining, its a process of creating new coins and rewarding those coins in the blockchain as they required some fee transaction to transfer in the block. Every crypto miner will need new blocks.

What Is Staking?

The staking is all about having funds in our cryptocurrency wallet to encourage the blockchain network; many apps support the crypto wallet; one of them is Trust Wallet. The staking is quite similar to pos (Proof of Stake), it has been noticed in various blockchain networks.

How Does Staking Works?

As we mentioned earlier the staking has a fund in a crypto wallet that helps to their operation as a support to keep active various blockchain networks; it uses the algorithm of Proof Of Stake (POS) for the various new cryptocurrency staking usually works on purchase of crypto coins and involve having funds in the crypto wallet for the particular time. It gives rewards of your fixed deposit as non-digital currency; it’s similar to a fixed deposit which interest you will get at the end of the period contract.

However, in pos (Proof of Stake) is different it also rewards you but with extra coins for holding coins for the period, you will get rewards for supporting more cons you have for more time in the wallet it will increase the number of the coins.


You might have heard about it many times, but if you still don’t what Mining is? Then it would help if you did not skip this. The Mining required technical knowledge to understand its algorithm and computer knowledge is a must to solve algorithm stuff for the particular blockchain network. Mining can be only performed by solving computational math problems.

Once the math problems of computers get to solve, you will new coins on your blockchain network.

What is Proof Of Stake (POS)?

POS is a different concept than staking its mine coins how much coins she or he holds in the crypto wallet, as we stated above the more coins you keep more power mining you will get according to the networks.

If you know about Proof Of Work, then you need to know that the proof of stake is an alternative of it, its uses 1-megabyte capacity (maximum) to tackle duplicates multiple computer and nodes when the transaction is initiated.

Mining is a process to get it done correctly, but it requires a lot of power of electricity and computing high power which makes it very costly.

According to an estimate in 2015, one bitcoin transaction cost electricity to power up to 1.57 American households each day. So to run mining process miners will have to pay the huge electricity bill, and even the initial investment of Mining is also expensive that which could lead to selling awarded coins they get that can also lead down stats in the price of the cryptocurrency.

How Does Proof Of Stake Work?

Proof-of-Stake works differently than others, and it doesn’t imply rewards you for finding blocks. There are also no miners work involves doing work for a reward. Instead, the system chooses a block creator deterministic-ally, depending on the power of stakes for a particular network.

As there are no miners, but there is validator which locks up their ether in the ecosystem of stake, it’s like adding validator in different blocks to get block rewards according to their stakes.


If you want to save money, then the staking could be the best option, and its also an excellent way to earn coins and more rewards you will get. However, in POS you will need to spend your coins which can lead down movements in the rate of crypto or bitcoin currency.

Article contributed by Hari babu!