Proof-of-work versus proof-of-stake: what's the difference?

Proof-of-work is the original way cryptocurrencies added new blocks to blockchains

It’s a competitive method requiring “miners” to solve cryptographic puzzles, often using equipment that consumes massive amounts of energy. Ethereum switched to proof-of-stake, a less energy-intensive method in which “validators” stake crypto to be randomly chosen to check transactions.

Explaining the Ethereum merge in simple terms

Ethereum slowly switched the way it adds blocks to the chain. In 2022, it completed its transition from a proof-of-work model to a proof-of-stake model. That event, called “The Merge,” happened when it combined two Ethereum blockchains operating under different systems. For an explanation of proof-of-work and proof-of-stake, and the significance of switching from one to the other, read this article.

How to stake Ethereum

Ethereum switched to a proof-of-stake method for validating transactions in recent years, and now investors can stake 32 ether to participate and earn rewards. Several ways to get involved in ether staking exist, with varying levels of income, difficulty, and impact. Some allow users to stake less than 32 ether by pooling funds with other users, while others require less advanced hardware. Read about the different staking methods here.

A simple visual explanation of how blockchains work

Blockchains are decentralized, distributed, and digital methods to record transactions and prevent alterations and tampering of the record. That's a simplified definition. This easy-to-understand six-minute video further and better explains what blockchains are and how they work using colorful illustrations and clear, concise clarifications on their processes and what makes them so special.

Solana is a blockchain designed for fast, scalable, low-cost transactions

Solana uses a unique Proof-of-History and Proof-of-Stake hybrid to process thousands of transactions per second. Solana supports a wide range of Web3 applications, offering an alternative to Ethereum with lower fees and faster speeds. Its native cryptocurrency, SOL, is used for transactions, staking, and governance.

NFTs create a unique digital signature to prove ownership

NFTs create digital certificates for unique online collectibles, mainly on the Ethereum blockchain. Artists can leverage NFTs to verify their online works.

Probate is a legal process that determines if someone’s will is valid

The executor of the will in question not only collects estate assets, but also pays outstanding taxes and more. Grantors sometimes opt for a revocable trust instead of a will so their assets avoid probate in the event of their death.

The different types of stablecoins include algorithmic stablecoins

In addition to fiat-backed stablecoins, commodity-backed stablecoins, and cryptocurrency-backed stablecoins, algorithmic stablecoins use smart contract-based mechanisms to maintain a stable value by responding to supply and demand.

What's the difference between a stock and a share?

While the words "stock" and "share" are often used interchangeably in casual conversation, they have different meanings. For instance, "stock" is more general, whereas "share" is more precise.

A deed is a legal document that shows change of homeownership during a sale

A deed differs from a title, which is the actual right of ownership to a property, and a concept rather than a physical document. These days, many deeds are online rather than physical pieces of paper kept in a home.

How prediction markets differ from sportsbooks matters for regulation

There are a number of differences and similarities between sportsbooks and prediction markets, despite both allowing people to bet on outcomes for sports-related events. For instance, prediction markets typically earn revenue through transaction fees rather than taking directional exposure to outcomes.

The difference between cash flow and profit, explained

While cash flow is the net balance of cash moving in and out of a business, profit is the remaining balance after subtracting a business's operating expenses from its revenue.

Activist investors use large ownership positions to influence companies

By holding large ownership positions, which often come with leveraged access to a company's board or the ability to force a shareholder vote, activist shareholders can change a company's corporate governance, leadership, and overall direction. Critics argue that activist shareholders hurt companies in the long term by prioritizing short-term higher shareholder returns over sustainability and growth efforts.

The cryptocurrency equivalent of going public

An initial coin offering (ICO) is cryptocurrency's version of an initial public offering (IPO). Similar to the way a company offers shares on the stock market for the first time, ICOs occur when a cryptocurrency company seeks to raise funding for a new coin, app, or service. If you're entering the field, get the details on how it all works.

Misunderstandings about how quantum computing works may have overhyped their ability

Quantum computers are often viewed as machines that can solve all problems instantly by trying every solution simultaneously. Instead, they amplify correct answers and cancel out wrong ones, which only works for specific kinds of problems with special structures.

Hank Green on the problem with being a creator

YouTuber Hank Green takes over The Financial Diet's platform to talk about the creator economy. He walks the audience through the financial decisions involved when making content. He also describes brand deals, and who actually owns the content posted on social media platforms—the creator or the platform itself?

Visualize how passkeys, which rely on asymmetric cryptography to authenticate users, work

After using biometrics or a PIN to access the private key stored on a device, it is combined with a random number generated by the site to produce a cryptographic signature. This signature is verified using the site's public key, allowing a user to log in without entering a password. This reduces the risk of fraudulent messages—phishing attacks—and data breaches.

Memecoins are a type of cryptocurrency—a form of digital currency with a wide variety of uses—created around popular 'memes,' or viral internet jokes.

Why being able to disprove explanations distinguishes scientific theories from pseudoscience

Introduced by philosopher Karl Popper, falsifiability holds that a scientific theory must make predictions that could be proven inaccurate by future observations. Explanations that cannot make such predictions are not scientific theories. It is scientists' jobs to seek out data to poke holes in scientific theories, thereby potentially strengthening them if they hold up to scrutiny.

Read about the pros and cons of working from home

While proponents argue that it's cheaper for both employers and employees to work from home (rather than spending money commuting to an office with an expensive lease), others point out that working remotely can make some workers feel isolated. These are just a few of the many common critiques and perks mentioned in the remote work debate.

401(k) plans and pensions differ in who has control over the investments

With pension plans, a company contributes to an investment fund from which it distributes regular payments to a retired worker until their death. A 401(k) gives the worker control over contributions in a tax-advantaged account.

An explanation of hard credit checks vs. soft credit checks

Some buy now, pay later services do a soft credit check rather than a hard credit check, like credit card companies would do when someone applies for a card. While hard credit checks can impact your credit score, soft pulls typically do not.

Data center types vary based on location and the workloads they manage

Enterprise data centers are built on-premises and afford businesses greater control over the management and security of their data. Cloud data centers are built off-site and share their resources with millions of users through an internet connection, with the largest—hyperscale data centers—spanning millions of square feet. Managed data centers offer off-site hardware that companies can lease.

Contrary to popular belief, Netflix didn't kill Blockbuster

Blockbuster was definitely the loser in its years-long battle with Netflix, but the conventional wisdom that the streaming giant killed the established video store chain is incorrect. Blockbuster’s large debt load—and an activist shareholder who didn’t fully appreciate the threat Netflix posed—led the chain to squander its advantages.

Explaining computer kernels and what makes monolithic kernels different from microkernels

A kernel is an intermediary piece of software on a device that manages the connection between software programs—the services and processes they perform to run correctly—and the available hardware resources, such as memory and computing bandwidth, including prioritizing resource allocation and managing access to specific hardware. A monolithic kernel manages all of an operating system's services, whereas a microkernel only handles essential services.

Understanding how non-profit entities manage electric grids to ensure supply-demand balance

Independent System Operators in smaller areas and Regional Transmission Organizations that operate across multiple states run wholesale electricity markets. Electricity suppliers can submit competitive bids to meet estimated demand in day-ahead markets while keeping consumer costs low. ISOs and RCOs also inform markets of deviations in these estimates so that suppliers can adjust how much power they generate, which is then bought and sold in real time.

How fusion—which releases energy when two lighter atoms combine to form a heavier atom—differs from fission

Some coin denominations have ridges etched on their sides, partly to prevent counterfeiting, in a practice called 'reeding.'

Learn how to read a prospectus, the juicy document that any company must file with the SEC before going public.

Pure water does not conduct electricity because this flow of energy requires the movement of charged particles, and water is a neutral molecule.

As of 2025, the most cited papers in science include a review of graphene, methods to improve image recognition, streamlining electron density calculations, and optimizing protein studies.

Some renewable energy sources may weaken the resiliency of electric grids by removing outage buffers provided by coal- and natural gas-fired plants, which provide the system with more time to find a new power source if a plant goes down.

Watch how deep-sea mining equipment collects and processes polymetallic nodules—metal-rich, potato-shaped rocks—from the ocean floor and creates environmentally damaging plumes of sediments.

Netflix profits when you're not watching, and its movies are designed that way—read a detail-rich critical essay exposing lesser-known Netflix takes

Gerrymandering works through two techniques: cracking opposing voters across districts to dilute their power, and packing them into a few to waste their votes in lopsided majorities.

When you complete a CAPTCHA on a website to prove you are human, you may be unknowingly training algorithms for self-driving cars, whose systems require training data to help identify crosswalks, bicycles, and other outdoor objects.

Art theft is the third-largest source of criminal revenues worldwide, thanks in part to the subjective nature of valuing a work of art.

Listen to an in-depth conversation on the links between Parkinson's disease and herbicide exposure and the challenging pace of scientific investigation.

Recent research found that the brain doesn't seem to massively rewire following amputation—upending earlier beliefs about the cause of phantom limb pain.

Scientists can determine Earth's past climate conditions by analyzing air trapped in microscopic bubbles within ice cores—columns of compressed snow layers that build up over hundreds of thousands of years.

The USPS spent $3.97B in 2024, accounting for .058% of the federal budget.

The US Constitution is widely regarded as the longest-standing written national constitution still in force—see how it has influenced rights worldwide.

The rivalry between Alexander Hamilton and Thomas Jefferson centered on federalism—the question of how much power the federal government should hold relative to the states.

According to the physics of black holes, our 4D reality may be a hologram—a projection of information coded on a 2D surface on the edge of the universe.

Long before Major League Baseball began allowing instant replay for balls and strikes, an umpire reluctantly used the technology to determine whether a hit was a home run, a move that inadvertently ushered in a new era for the sport.

Legendary architect Frank Lloyd Wright designed the SC Johnson headquarters in Wisconsin, aiming to make a cathedral-like workplace

Explore chaos in this simulation of two double pendulums, where small differences in the release angles produce wildly different outcomes.

Use this tool to calculate the dollar value of your parental mental load, from meal planning to coordinating after-school care, then see resources that help generate solutions.

For centuries, it was common to sleep in two shifts: a few hours at the beginning of the night, and a longer period beginning around midnight

Famed poet TS Eliot rejected the manuscript for George Orwell's political fable 'Animal Farm,' writing that its criticism of authoritarianism was not 'the right point of view.'