The functioning of the two most common consensus algorithms, PoW and PoS, may be distinguished. PoW uses a lot of resources, whereas PoS uses very little. Other notable distinctions include the requirement for a large amount of processing power in PoW vs none or very little in PoS. PoS is both more cost-effective and has a faster completion time when compared to PoW.
Blockchain works on a consensus. Proof-of-Work and Proof-of-Stake are two algorithms of consensus. Both of them are needed to add blocks to the blockchain.
If network uses PoW, miners have to compete with each other to complete the transaction. Then they can get a reward. PoW requires a huge amount of energy for miners to sell their coins to foot the bill.
Proof-of-Stake was created as an alternative to PoW algorithm. This one doesn’t need that much energy. And the power of a miner depends on the quantity of coins held by miner.