A proof system in cryptocurrency refers to a method used to validate transactions and secure a blockchain. It establishes consensus among network participants about the state of the ledger. The two most common types are Proof of Work (PoW) and Proof of Stake (PoS). In PoW, miners solve complex mathematical puzzles to add new blocks to the blockchain, earning rewards for their computational efforts. This process secures the network but requires significant energy and resources.In contrast, PoS allows validators to create new blocks based on the number of coins they hold and are willing to “stake” as collateral. This method is generally more energy-efficient and encourages long-term investment in the cryptocurrency.Other variations, like Delegated Proof of Stake and Proof of Authority, exist, each having different approaches to achieving consensus and ensuring security. Overall, proof systems are crucial for maintaining trust and integrity in decentralized digital currencies, enabling participants to verify transactions without relying on a central authority.