Proof of Work relies on physical computer power while Proof of Stake relies on locked-up digital money.

Think of Proof of Work like a massive, worldwide race where thousands of powerful computers guess random numbers as fast as they can to win a prize. It takes a lot of physical gear and electricity. Proof of Stake changes this completely. Instead of a guessing race, the system acts like a lottery. You buy tickets by locking up some of your own digital coins. The more coins you lock up, the higher your chance of being chosen to update the ledger.