What is the difference between Proof of Work (PoW) and Proof of Action (PoA)?

Proof-of-Work (PoW) is a consensus algorithm that uses specialized data servers (miners) to confirm transactions on a distributed and decentralized public ledger called “blockchain” and continually produces new confirmed transaction files or blocks to add to the chain (like Bitcoin). With PoW, miners compete against each other to verify transactions on the respective network for rewards.

Proof-of-Action (PoA) recognizes contribution and energy usage tied to a given blockchain which generates a digital reward for the successful confirmation on the supported blockchain.

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