New Video: What's Proof of Work and Proof of Stake?
Hi there Steemers!
In my latest video I take a look at the challenges of establishing distributed consensus, explaining the "byzantine generals' problem" and how cryptocurrencies seek to address it through Proof of Work (PoW), Proof of Stake (PoS) and other novel solutions.
At the end of the day there isn't actually a "perfect" solution to the problem yet, and both PoW and PoS have their advantages/disadvantages when compared. It'll be really interesting to see what Ethereum do with their upcoming release of Casper and switching the network to Proof of Stake.
What are your thoughts on Proof of Work vs. Proof of Stake and how things will shake out in the future? Would love to hear from you in the comments. :)
so once all bitcoin is "mined", miners will have to rely on network fees alone as incentive which I assume after 100 years from now will be well worth it!!
Correct - the problem here is that we need to be careful that the mining fee doesn't skyrocket, making the currency less enticing to use on a day-to-day basis. Nobody wants to pay $1 in transaction fees every time they buy a coffee. Some of the work on payment channels (see Lightning network) address this but are in the early stages and the technology has not yet been proven in the real world.
I'm going to add your channel to Crypto TV OK?
Sure, just let me know how to get more involved :)
You can see it here: https://www.youtube.com/playlist?list=PL1U50Euc9ip-dazUtCi7nULt81NiwrgPV
If you are going to launch another crypto would it be POS/DPOS POS/POW hybrid or POW or something new ?
Likely Proof of Work, but using something that is more ASIC-resistant (look up Cuckoo Cycle) and makes mining a more even playing field. Proof of Stake is still very cutting edge and once you go down that road, you can't really go back. So you have to make sure you have distribution of tokens etc. really locked down sensibly. That's what worries me about Ethereum switching to Proof of Stake with such centralized distribution (made even worse with ICOs pushing thousands of ETH into single addresses).
cheers and will look into it.
Will bookmark for after work watching, looks interesting thanks for sharing
Hope you find it helpful - I think this topic will come up a lot more often as Ethereum heads towards making the switch! :)
You're a brilliant man! I like your posts!
Appreciate the support, thanks!
This is ver great and imformative for newbies like me. But i want to know one thing sir. Is value of bitvoin going decrease in few day's? Thanks for sharing this information with newbies. It's really helpfull dear 👍👍
Glad you're finding it helpful! As for the value of Bitcoin it's hard to tell what is going to happen... in the coming month we're going to see either a) Segwit2X activate or b) UASF activate on August 1st... if the latter occurs then there is a chance large miners such as Bitmain will oppose the user-activated fork and start mining their own hard fork of the blockchain. I cover a lot of this in a previous video:
There's no telling what a fork will do to the price of Bitcoin but my advice is to make sure you get your Bitcoin off centralized exchanges and make sure you hold the private keys in a wallet like Electrum etc. Doing so will mean that you can actually redeem/spend your Bitcoin on both forked chains and mitigate any risk... there's actually a chance you'll double your money if both forked chains survive to some extent and end up getting listed on exchanges.
Hey Jackson! nice to see you hanging around this space still. :)
Good post.
Thanks, appreciated!
Good)