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RE: Spread knowledge and earn SBD with the Crypto quiz on: blockchain consensus algorithms

in #cryptoquiz6 years ago
  1. Proof of work (PoW) is the consensus mechanism used by Bitcoin. As the name suggests, the mechanism requires nodes to prove they have done work to receive the right to add new transactions to the blockchain. The work is energy intensive, as it involves the nodes hashing data through high-performance, application-specific integrated circuit (ASIC) chips.

  2. Proof of Stakes involves buying the coin and keeping in the wallet for a certain fixed period, just like putting money in a fixed deposit for a fixed period.For Fixed deposit, you will be paid an interest as a reward.For Proof of Stake, you will be paid additional coins as a reward.
    so validators get paid by new coins created in the validation of the block.

  3. 3 others consensus algorithms
    #Proof of Capacity
    With the proof-of-capacity (PoC) consensus mechanism, instead of using computing power or stake in coins, blockchains have the option to let nodes in the network use their available hard drive space. This mining protocol is useful especially in networks that facilitate the sharing of memory space.

#Proof of Burn
Value from one cryptocurrency can be transferred to another through the proof-of-burn protocol. This means that a node participates in a lottery to decide the status of the blockchain by burning value they already hold in the form of another cryptocurrency such as bitcoin or ether.

#Tangle

Tangle protocol is one by which a user has their transaction confirmed by the network if and when they help confirm two other user transactions that came before theirs. It is therefore different from the other protocols in that no single node helps maintain the entire ledger at any given time. Each node helps add or edit two transactions at a time.

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