Traditional bank transactions typically involve a centralized system where banks manage and verify transactions. While these processes have become more efficient with advancements in technology.

On the other hand, blockchain transactions operate on decentralized networks, which rely on consensus algorithms (e.g., Proof of Work, Proof of Stake) to validate and secure transactions. The most energy-intensive blockchain mechanism is Proof of Work, used by cryptocurrencies like Bitcoin. Mining in Proof of Work involves solving complex cryptographic puzzles, consuming vast amounts of computational power and electricity.

Blockchain is future generations payment system