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Since there are no middlemen in blockchains, there is a challenge which is verifying transactions. Some blockchains like Bitcoin and Ethereum overcome that using the Proof of Work method. The other method is Proof of Stake. This method is consuming less energy than the other.
These two methods are similar. Both method’s distributed network participants need to agree on which new block is added to the blockchain but how they are doing this is different.
"Proof of work
Proof of work uses energy because miners compete to solve math problems by building powerful machines that run 24/7.
Proof of stake
Proof of stake is still in its infancy but uses less energy than proof of work. Bitcoin uses proof of work, and Ethereum is currently transitioning from proof of work to proof of stake."
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