Crypto Academy Season 5 Beginners' course - Task 6: Different types of Consensus Mechanisms

What is the difference between PoW and PoS?

Advantages and Disadvantages?
Which one is better in scaling capacity?
Examples?

What Is Proof of Work?(PoW)

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The evidance of labor is associated with or associated with bitcoin is probably a protocol or concept designed to create electronic transactions that are secure from cyber attacks and third-party barrenness, and are virtually redistributed.
It is used to verify a certain mathematical defect that a laptop's computer code must be suitable, once the defect is properly resolved, it must be verified by the system, and it is validated by alternate users.

Proof of Stake (PoS):-

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Verifiers work in order that transactions between users of the system, area unit or bound functions are properly completed. The more resource area units entered into the system, the longer it takes to verify are ready to belong to the blockchain network and carry out their tasks.
Instead of miners using computers to trace transactions, as they are doing in the case of the same old or regular Proof of Labor, POS creation is actually centralized, and even early cryptocurrencies were completely excluded. had gone. was taken the system as well as the more likely it is to convert into a validator.
Normally, the validators of this technical area unit selected through Stax . The POS protocol model as a whole is Peercoin. However the energy consumed will ensure transactions and the creation of new blocks that support the proportion of coins it holds. Unlike PoW, PoS is a small amount that is risky for an associate degree attack.

The difference between POW and POS. :-

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In PoW, the probability of mining a block is determined by the number of laptop jobs performed by a worker, whereas in PoS, the probability of verifying or checking a replacement block is determined by the number of times a privately owned coin is mined. . , , and indeed during this latter case, the amount of coins one has matters.
In PoW, the primary worker is issued a souvenir for solving each block's cryptoanalytic or proof of labor puzzle.
A miner's ability to mine a block quantity of processing labor] number is determined by
Ready to make blocks doesn't require a lot of advanced laptop equipment
Proof of labor requires a lot of electrical energy which miners want after trading their coins
Proof of Bet Systems Square Measure is Always Prone to Attacks
It optimizes processing power through the use of specialist equipment that utilizes a server-grade unit.
Proof of Work systems are always difficult for hackers while Proof of Stake systems are always vulnerable to attacks.

Advantages Of Proof Of Work (PoW):-

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This protocol additionally creates a redistributed network which is the overriding or mainstay of cryptocurrency activities.
Proof of Work (PoW) keeps the blockchain in a very difficult or difficult instrument, whereas nowadays equally as extraordinarily difficult and dear to attack.
It is considered a reasonably secure contract protocol.
The miner area unit is rewarded with transaction fees and fees for each completed block.
Miners get rewards for solving a puzzle, I say there's a job supply for miners because they get what they're doing

The Disadvantages Of PoW:-

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Higher energy consumption results in an increase in price and therefore on setting and this can be comparatively difficult and difficult for the user. In the future, once we have the propensity to offer additional mining rewards, miners can simply cash out transaction fees, for any fees sufficient for miners to make a fair transaction. Step by step, individuals pay less fees and miners earn less cash.
Proof of Labor is the result of a long-standing reliance on mining activities, while more recently created digital currencies still participate in the crypto market.
Tons of garbage goes into getting the machines and putting them together.
There is excessive energy consumption resulting in rise in prices and environmental problems.

Advantages Of The Proof of Stake (PoS)

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Proof of Stake offers a lot of benefits and rewards to the miners who use their cryptocurrency by the World Health Organization. Token Protection.
ease of scaling

Proof of Risk cannot be said to be equally risky as it involves the provision of security for future miners.
Transactions in POS systems are quick and reliable.
Requires less time and focus
To modify them to receive compensation in the event of any fraudulent activity on the net such as cyber attacks or cyber crimes
It consumes remarkably less energy than Proof of Work.
It is easily accessible and anyone will participate as no expensive hardware is require.

Disadvantage of proof of stake(pos) :-

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Elevating the proof-of-stake muse to a decentralized network, attempts to severely hurt the foundations of the cryptocurrency system.
Whoever earns, at the same time gives them less decision-making power on the network and turns them into authorities, which breaks the principle of decentralization of cryptocurrencies.
The Cryptocurrency or Monument Area Unit is paralyzed, or rather, immobile inside the network.
PoS is centralized and less secure, so can be susceptible to quality attacks that can damage attackers' investments.
Advanced bookmakers get a favor. Thereby making it fragile for those with low stakes.
POS is run on a centralized basis which makes it break the law of decentralization

Which is better for scaling capacity? Examples?

Proof-of-Stake (PoS) mechanisms are best for increasing efficiencies as it has good scalability and replaces the high energy consumption generated by proof of labor for investing in cryptocurrencies or tokens. This means that the POS is more climbable than the prisoner. The result may be that 2, the POS serves to solve the prisoner's problems. This means that POS was built to make things easier in terms of transactions that take less time to verify.
Ethereum

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while it was absolutely harder to know proof of stake than a prisoner would in the event of a settlement on the network, Ethereum is considered one of the leading cryptocurrencies out there that are based on proof of stake creation. As far as it is concerned, that effort has been consistently directed towards the phenomenon of Ethereum, especially since their part two upgrade originated. For example, an Ethereum user area unit needs thirty-two ethical positions to be able to validate transactions, as they are hand-selected on an irregular basis, and that area unit is under their supervision. Jointly verified and managed.

Conclusion:-

In the above paragraph we learn the pow and pos and i think the writeen paragraph tells many things about the pow and pos the advantages and the disadvantages of both and im really thanks to proffesor to give this amazing task.