Proof of Work (PoW) uses computational power to solve puzzles and validate blocks. It’s secure but energy-intensive. Proof of Stake (PoS) selects validators based on how much cryptocurrency they hold and are willing to lock (stake). PoS is faster, scalable, and uses less energy, making it ideal for newer blockchains. Both systems are used to reach consensus without a central authority.

Example Shown in Video: Ethereum transitioned from PoW to PoS in 2022, reducing its energy consumption by over 99% while maintaining network security.