Crypto Mining Vs Crypto Staking

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The algorithm used to verify transactions and add new blocks to the blockchain is the fundamental difference between staking and mining.

Crypto mining is the process used by cryptocurrencies using the proof-of-work model to generate new coins and validate new transactions.

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Whereas, crypto staking uses the Proof-of-Stake and investors use their coins to stake in the transaction process and receive rewards in return.

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Mining requires powerful GPUs to perform complex calculations to solve puzzles whereas staking doesn’t require GPUs.

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In mining large amount of energy is consumed by miners which also has a negative impact on the environment and results in a large carbon footprint.

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Whereas in staking the energy consumption is drastically lower compared to mining.

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Unlike mining, no technical knowledge of blockchain and its protocols is required for crypto staking.

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