this post was submitted on 15 Nov 2023
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POS v POW (alien.top)
submitted 10 months ago by ISObatteries@alien.top to c/ethereum@blockchained.world
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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 ?

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[–] TCr0wn@alien.top 1 points 10 months ago (1 children)

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

[–] Njaa@alien.top 1 points 10 months ago (1 children)

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.

[–] TCr0wn@alien.top 1 points 10 months ago

Yes it is.