PoS vs Pow is a decentralized consensus mechanism used to validate transactions and add new blocks to a blockchain. Although it is still in its infancy, a POS powered network has the potential to be a boon for many industries including financial services, health care, energy, and more. Its benefits include lower energy costs and faster transaction processing times while providing better privacy protection than traditional payment systems.

Despite the hype, PoW is not without its fair share of pitfalls. One of the more egregious is centralization, which occurs when a group of validators controls more than 50% of the network’s total mining capacity. To prevent this, a well-planned scheme may call for a smart contract to divvy up network resources in an equitable fashion.