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

Tell us about your favorite concept or term related to blockchain, try to be explanatory and make sure to give your opinion. (For example decentralized, Genesis block, hard fork, and proof of stake?

One of the major facets of blockchain is the consensus mechanism. This simply refers to how stakeholders who are prospective validators become actual validators. Before a transaction is marked valid and processed there must be a session of agreement between stakeholders. There are a few examples of these methods such proof of work, proof of stake, delegated proof of stake, and so on.

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My favorite concept in blockchain is proof of stake. This is a consensus mechanism that is used to process transactions and help to create new blocks in a blockchain. I guess you may be asking yourself what a consensus mechanism is. This is a method that guarantees the validation of entries in a ledger in this case, blockchain. It is important to note that proof of stake is different from proof of work. Just as the name states, you can have the power to validate a block to the extent of coins you are holding. Essentially, if you stake more coins you stand a better chance to validate a block.

Initially, proof of work was the mechanism that was used to conduct consensus operations up until POS was brought to the scene. This was used to validate blockchain and put in the system, new blocks. In a way, it is safer to use proof of stake because it is less prone to attacks. This is because the compensation method makes the possibility of an attack on the network non-existent. Proof of stake reduces the amount of computational work that is needed to verify blocks and make sure that the ecosystem is secure. Staking means risking something for some sort of reward. The way it works is that you stake some coin that serves as your collateral and you stand the chance to be a block validator. Emphatically, coin owners who stake coins become the validators in the system.

After you stake your coin and become a validator, the system is randomly operated in a bad to be fair and transparent. The random system is then used to select those who will mine at a particular time. In proof of work, a competition-based approach is adopted in selecting validators however, the reverse is the case when we are talking about proof of stake. For instance, if you want to become a block validator using the proof of stake mechanism you would make do by staking some amount stipulated amount of coin. Using Ethereum as an example, if you desire to partake in the network as a block validator you would need to stake at least 32 ETH. One validator can not validate a block alone, he needs a network of other validators who would collectively agree that a block is valid before it is finally made valid. It is paramount to note that there is more than one way to validate blocks using the POS mechanism. When the ETH system transitions to a POS system of operation it will employ the use of shards to carry out these kinds of operations. If selected as a validator you will make use of the shards as stores to blocks, furthermore, 2/3 of available validators must ensure that the transaction is valid and then the block is closed after this procedure.

The End Goal of Proof-of-Stake

Proof of work has been around for a while and it has had its lapses and shortcomings. The proof of stake mechanism has proven to be useful in eliminating the negative environmental impact of proof of work. I initially stated that the proof of work mechanism deals with competition as a metric system. The proof of stake mechanism attempts to make corrections to these issues, through the system of potential validators staking their coins in the system. This substitutes the need for computational power. Having said all, one of the cons of making use of the prof of stake system is the 51% attack. The 51% attack happens whenever an individual has about 51% holding capacity of cryptocurrencies at stake. Anyway, the main security features of PoS are not put out for the general public. The main concept of Proof-of-work is the fact that miners validate transactions themselves in the same regard, that proof of work makes do with. Proof of stake allows people to earn by simply putting out their currencies as collateral.

Why do you Think it is Important in the Blockchain?

The thing is, the majority of the available proof-of-stake systems can allow single entities to make x numbers of validators. Furthermore, because of the nature of the cost implication involved in PoS, an individual who has more stake is liable to have more control of the system. If you want to hit the hammer on the head of the nail, the nature of proof of stake is that, there’s an endless flow of operation owing to the fact that proof of stake has no need for computational input. This drastically reduces the impact of energy in regard of environmental sustainability.
In the same vein, as vaguely stated earlier, proof of stake can be utilized to validate crypto transactions viz-a-viz the Blockchain. Since the Blockchain is a ledger that operates without a central governing authority, proof of stake makes it possible for individuals to participate in the lucrative-validator task without making do with high energy or computational power thus, efficiency is guaranteed.

Do you think that the existence of the blockchain would be possible without this concept? Is there an alternative or similar term?

Yes. Factually speaking, there has been a system of consensus long before proof of stake came into the picture. The proof of work is an algorithm that requires severe computation to ensure the security of the blockchain. Both systems have been in existence for a long time and they have cons and pros. Blockchain cannot operate properly without the consensus mechanism. The popular PoW system.

Blockchain could exist with just the existence of proof of work or proof of stake. The key thing to note is, that blockchain requires some mechanism to achieve consensus for validators. Without it, there won’t be a way to keep track of the validity or authenticity of nodes or blocks. It is true that PoS has its shortcomings however, it is, without doubt, the future of the system. If we look forward to seeing the wide adoption of blockchain, a sustainable environment, and a system of valid and authentic transactions, proof of stake is the future.

For the record, there are other alternatives to PoS such as the proof of work and delegated proof of stake. This is a form of digital democracy because of its participatory nature. This kind of mechanism is one of the fastest as it is way more efficient in contrast to proof of work. In addition, an asynchronous consensus is a mechanism that functions well without consensus

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

Reputation delegated proof of stake is a better version of proof of stake. The model involves a staking system where potential validators are ranked in relation to the behavior of their nodes. High-quality nodes are selected for validator roles. The result of this modus-operandi is to the end that there’s an increased level of security and authenticity of verified blocks on the network. Furthermore, delegated proof of stake is one that works with respect to the reputational value of a validator for instance on a scale of 1-8, the higher your reputation, the more chances you get of being part of the circle of validators. Since DPoS evolved from PoS, it has shown a progressive level of efficiency. This is favorable with respect to the increase of industries in space. In essence, the delegated proof of stake makes the process a better one as you would have to earn your spot as a validator.

Conclusion

It is my assumption that having read my post, you have an idea on what proof of work, proof of stake, delegated proof of stake, and reputation proof of stake is. Having this understanding will shape your perspective on how you see blockchain and its consensus mechanism.