The main differences between the Proof of Work and Proof of Stake are :
Proof of Work : Proof of Work(PoW) algorithm is used to confirm the transaction and creates a new block to the chain. In this algorithm, miners compete against each other to complete the transaction on the network. The process of competing against each other is called mining. It defines an expensive computer calculation. In this, a reward is given to the first miner who solves each blocks problem.
Proof of Stake : In the case of PoS algorithm, a set of nodes decide to stake their own cryptocurrencies for the transaction validation. They are called 'stakers.' In proof of stake, the creator of a new block is chosen in a deterministic way, depending on its wealth, also defined as stake. It does not give any block reward, so miners take the transaction fees only. Proof-of-Stake can be several thousand times more cost-effective as compared to proof of work.
