Is there anyway for someone to explain this in not so technical terms, the pros and cons of both of these and what they are?
From my understanding:
POW (proof of work) is bitcoin being mined through mining rigs using computers. The first computer that finds the answer distributes it to the network and it is added to the blockchain and the miner gets a reward. So the proof of work is the computer computation.
POS (proof of stake) is bitcoin being mined simply by owning that coin over an arbitrary amount of time. You hold the coin and get more of that coin, because you hold it.
Is this correct?
From my understanding:
POW (proof of work) is bitcoin being mined through mining rigs using computers. The first computer that finds the answer distributes it to the network and it is added to the blockchain and the miner gets a reward. So the proof of work is the computer computation.
POS (proof of stake) is bitcoin being mined simply by owning that coin over an arbitrary amount of time. You hold the coin and get more of that coin, because you hold it.
Is this correct?
It is correct. Though incomplete.
Stake also means active participation by having a node with your wallet (holding your coins) up and running in stake vote mode.
Work is not exactly finding an answer (I would think answer is something that someone already knows). I would say PoW is finding a solution to a problem. A solution nobody knows, and a successful miner occasionally should find it and get a reward for it.
Thanks for you question though
