What Are Crypto ‘Proof of Work’ and ‘Proof of Stake’?: QuickTake

Where does money come from? Dollars are printed by the US Mint. For cryptocurrencies, the answer is more complicated. Until now, both of the most widely used digital tokens, Bitcoin and Ethereum, have only been issued to pay for tasks performed by so-called miners in what are known as proof of work systems. It’s an approach that has drawn increasing criticism for the large amounts of energy consumed and pollution produced. Ethereum is switching to a different system, called proof of stake, in a process known as the Merge. Proponents say the approach can cut Ethereum’s electricity use by 99%. ...