Steemit Crypto Academy Contest / S1W3 – Blockchain through the concepts by @ngoenyi

in SteemitCryptoAcademy2 years ago (edited)

Greetings dear friends, trust we are all doing great? Welcome to the week 3 of the steemit Engagement Challenge. It is time for me to take part in the steemit cryptoacademy contest. This weeks theme is Blockchain through the concepts.

This topic is important since blockchain is surrounded with so many concepts which makes it what it is today. It is just one word, but comprises of so many terminologies. Our understanding of these terms makes blockchain more clearer to us and how it works

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Introduction

Consensus protocol is a very important concept in every computer driven system. It is the process or mechanism which enables a machine, users or program to effectively coordinate itself when being used by several persons. So it answers the question of which entry should be executed or added despite having different persons on it who does not trust each other. So this means that there should be a singular origin of truth that every user will rely. Thus providing a check both for those who create blocks, validate entries added to the block and users to ensure transparency within the block. It is used to agree on what we may refer to as the truth, whenever the blockchain receives data from many nodes.

I am discussing on one of these protocols called Proof of Stake*

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Proof Of Stake

A Proof of Stake(POS) is a type of consensus mechanism that is used to verify and validate data, create new blocks in a blockchain. It ensures that whatever data that is added to the block is valid in the process keeping the distributed ledger secure.

In this type of consensus protocol, validators or nodes are selected based on their holdings or quantity held of the associated token of the blockchain concerned. This is done to reduce the level of computational work done and external resources like electricity and hardwares used in proof of work before a block is created. Selection of validators are randomly.

The coins held by these validators serves as collateral to the network in the case of any fraudulent action by them. These ones are randomly selected to validate a block and get rewarded for their work too. The more coins that are staked the more the validator will stand to benefit. If the validator acts in any dishonest way, the coins staked can be lost in the process.

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Why do you think it is important in blockchain?

Every blockchain requires a consensus protocol to ensure its transparency and reliability of data stored. So Proof of Stake provides the much needed process and space to do so.

The Proof of Stake does not require much energy in its block validation since much hardswares and other power equipment are not needed, making it environmentally friendly. Instead, it uses staking power to determine who gets to mine a block.

The use of this type of consensus protocol have kept a check on 51% attack, that is making it very difficult for someone to control 51% of the cryptocurrency, thus giving him control over the network. With this he can alter the blockchain and decide whatever happens on the network. So integrity of the blockchain is kept paramount.

The proof of stake also provides a fast and cheaper way of transaction processing within the blockchain. This is made possible because of the staked cryptocurrencies providing scalability. Investors too benefit from this by earning staking rewards from their staked coin.

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Can the Blockchain exist without this concept? Is there an alternative or similar term?

Yes, the blockchain can exist without the concept of Proof of Stake. On the one hand, assuming it is only POS that we have as a consensus protocol, the blockchain network will still exist, but cannot be relied on for transparency immutableness. Data stored cannot be trusted and can be edited or changed any time. Additionally the blockchain will easily be manipulated to suit owners intention.

On the other hand, there are several alternatives to Proof of Stake. These can be used on the blockchain network to still create blocks, verify and validate block transaction. These alternative have there own working module which is different from proof of stake, with their own advantages and disadvantages too.

Some of these alternatives that are also similar are but not restricted to:

° Proof of Burn(POB)

° Byzantine Fault Tolerance(BFT)

° Proof of Capacity(POC)

° Proof of Elapsed Time(PoET)

etc.

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Do you think it is possible to improve this term in some way? Explain

Yes it is. Despite the numerous advantages of this consensus protocol, work still needs to be done on it. The tendency of Proof of Stake leading to centralization is there. This is because, there is no limit to the amount an individual can stake to be selected as a validator. So an individual with much funds or group of persons can pool their funds together and stake as one person thus having a greater chance of being selected every time.

Another problem facing this consensus algorithm is its adoption rate and workability. Most busy blockchain networks still adopts POW. so we are yet to prove beyond reasonable doubt the efficiency of this protocol compared to POW.

The developers need to improve on its security. Nodes have been attacked and hacked several times and hackers have been able to discover bugs which could be used to create coin from nowhere, recover spent coins and hijack the blockchain. Thus more improvement needs to be done on the blockchain to prevent that from happening again.

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Conclusion

Proof of Stake have come to stay as a well known consensus protocol. Its benefits like being eco-friendly, not requiring much capital to mine coins, because equipment are not needed, protecting the blockchain from being taken over by miscreants, are great reasons while so many newly built blockchains are adopting it.

Hopefully, improvements will continue to be done on it to give that wide acceptance it desires.

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This is my introductory post here

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Sort:  
 2 years ago 

I have seen many posts on proof of stake but it was always hard for me to understand. But after reading this post I can say they I now know something. As PoS is used to verify and Validate data.

I just also made a publication regarding the Distributed ledger, and I think that is also interconnected with the PoS, as that is the mechanism to record the data in the database and PoS is used to verify that data

Each time I read your post I always enjoy it. But unfortunately for me this term is completely new to me. I'll do further research to deepen my mind.

A Proof of Stake(POS) is a type of consensus mechanism that is used to verify and validate data, create new blocks in a blockchain.

When we we deal with Cryptocurrencies and block chain. Please ma'am what is a consensus? Since a proof of stake is a type of consensus
Sorry I have some black spots at that level

consensus is an algorithm that makes it possible for there to be a record keeping for a decentralized system which can be similar to that of a centralized database. It ensures that one single valid copy of record is shared by all nodes

Ohh thank you for the update.

Now I understand better your post

I have an indept understanding of what POS is now. You know it is a term i found it so difficult to understand but through your elaborate explanation i get it all clear .

<centerCan the Blockchain

You may want go dekete this code..

Nodes have been attacked and hacked several times and hackers have been able to discover bugs which could be used to create coin from nowhere....

I think this is a very serious issue and much really needs to be done indeed. I can imagine what once hapened to the Ethereum network.

I am going to go back again and read this concept for better understanding. Thanks fir sharingband good luck with this contest.
Best regards from from @breeze.com

I have an indept understanding of what POS is now. You know it is a term i found it so difficult to understand but through your elaborate explanation i get it all clear .

Am glad to hear this. Congratulations on the understanding. We learn daily.

You may want go dekete this code..

Oops, thanks. It's corrected already. Thanks for the heads-up

I will be waiting for your entry. Thanks a lot

You are welcome Ma. Indeed my entry is coming not long from now .Shalom...

 2 years ago 

You have really done well in your explainations on the Proof-of-Stake consensus mechanism. Honestly, you made a lot of points clearly than I could have imagined.

I really enjoyed reading through your entry.
Wish you the best of luck

Proof of stake is green good for the planet) and also good for all users of the tech: the investors as well as the developers and users. You did a thorough job with the topic. Well done and all the best on the contest.

 2 years ago 

Yeah... Proof Of Stake concept comes with a lot of benefits one of which it's cost effective and consumed less energy compared to proof-of-work, you've chosen a good concept.

based on their holdings or quantity held of the associated token of the blockchain concerned.

What if corrupt validators have an uper hand, they will definitely corrupt the network. I always have the feeling of putting proof of work over proof of stake. It my opinion not against your work.

POS can't 100% provide the trust we need , but at some extend it a good feature on the blockchain. Giving that blockchain networks are moving from POW to POS, that means it picking grounds.

Thanks for taking me through this protocol.

What if corrupt validators have an uper hand, they will definitely corrupt the network. I always have the feeling of putting proof of work over proof of stake. It my opinion not against your work.

Well, like you said, it's your opinion. Pow can't also provide the 100% trust that we need because there is no perfection in anyone. So I have made my choice. It's upto you to write on yours.

Thanks for your input

This is great explanation, i didnt really know much about proof of stake but through your explanation in this entry i come to appreciate more on the Proof-of-Stake consensus mechanism.

I that was a nice lecture perse😊.
I wish you success!!

Thanks a lot for the kind words. Am glad the explanation is helpful.

You are welcome.

Eish! If only I had your knowledge with these crypto things!
I must agree, I am also lost in this challenge. I've been reading and reading and reading. Luckily there are still a few days left to complete it. :-)
You are an iron woman! Good luck for the contest!

 2 years ago 

Proof-of-stake is a consensus mechanism that is usually use to process all types of transactions and also create new blocks inside a blockchain.

I love the way you gave your reasons why proof-of-stake consensus mechanism is important to the Blockchain

Yes, the blockchain can exist without the concept of Proof of Stake.

You are perfectly right with this statement mom. Yes the only reason now will be the problem of transparency immutableness within the Blockchain because the data stored inside won't be trusted any longer since it can still be edited and change. But with the use of POS, this can't happen and hence the data will fully be trusted

Wooow what a great 😃 entry by you. Your work is very unique and all I wish for is success in this contest.. I will soon be dropping down my own entry to this contest soon

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