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Stacks: Is Bitcoin DeFi Overhyped, Underrated Or A Pipe Dream? | Muneeb Ai

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The Importance of Proof of Work

In proof of transfer, Bitcoin is the external thing that's coming. So people are actually bidding in BTC and they place their bids. They have a random probability that increases if you're bidding more in BTC. Over here, hash power is sort of like replace with Bitcoin that you're willing to spend. And the final piece, and this is the part that sometimes people have a hard time wrapping their head around it, is that we're not actually destroying the Bitcoin. Like in proof of work, energy is sort of destroyed. Right.

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