Cryptocurrency transactions are verified through proof of work and proof of stake mechanisms.

Proof of work requires computational resources and energy, while proof of stake involves staking cryptocurrency as collateral.

Major cryptocurrencies like Bitcoin use proof of work, while others like Ethereum use proof of stake to reduce energy consumption.

Proof of stake offers faster transaction approval and scalability but may lead to centralization.

Proof of stake incentivizes validators to behave well and penalizes bad actors.

Proof of work is more secure but consumes a significant amount of energy, leading to environmental concerns and electronic waste.

Both mechanisms aim to achieve consensus without a central authority.

Proof of work makes it costly to attack a network, while proof of stake avoids high energy consumption.

Proof of stake's scalability and security at scale are still under scrutiny.