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RE: Live Episode #35 A Miner's perspective, state of cryptocurrency mining! Ethereum, XMR, Zcash, Ubiq
What is the difference between POW and POS? how is it related to the difficulty issue?
Thank you....newbie in crypto
POS does not use hardware for mining, it's more similar to having money locked up in a wallet that generates interest. So if ETH changes to completely to POS there will be no POW (no more hardware mining).
If so, who is going to do the necessary transaction?
Quote from ETH wiki:
In general, a proof of stake algorithm looks as follows. The blockchain keeps track of a set of validators, and anyone who holds the blockchain's base cryptocurrency (in Ethereum's case, ether) can become a validator by sending a special type of transaction that locks up their ether into a deposit. The process of creating and agreeing to new blocks is then done through a consensus algorithm that all current validators can participate in.
You can read the full article here: https://github.com/ethereum/wiki/wiki/Proof-of-Stake-FAQ