POF-VS.-POS

Proof of Work (PoW) miners work on behalf of Bitcoin holders to see that transaction are successfully processed.  In order to see that these transactions are approved, miners commit their computer’s processing power to solve the encrypted algorithms within each transaction.

Proof of Stake differs entirely from Proof of Work.  Instead of processing through work output, the creator of a block is determined by their share, or stake, in a currency.

Under this system, forgers (the PoS equivalent of a miner) are chosen to build blocks based on their stake in a currency and the age of that stake within the blockchain’s network.  For instance, let’s say you hold 500,000 QTUM.  First of all, let me hypothetically congratulate you on your fat stacks. Getting back to the example, under the Proof of Stake system, you’d be more likely to create the candidate block than someone with 100,000 QTUM.  To go even further, if you had been holding your 500,000 QTUM in the same address for a year, you’d be more likely to generate the next block than someone who also has 500,000 QTUM but who has been holding it in a network address for half a year.