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FC MARKETS

Markets, money and the economy, explained for American investors

Topic

Consensus Mechanism

1 article

Crypto

Proof of Work vs. Proof of Stake: How Blockchains Agree on Truth

Every public blockchain needs a way to agree on which transactions are valid without a central authority. Proof of work and proof of stake are the two main answers. This explainer compares how each works, what each costs and protects against, and the trade-offs investors should understand.

5 min read