Different types of Consensus Mechanisms - Steemit Crypto Academy Season 4 - Homework Post for Task 6
Hello everyone. I hope so that all of you will be happy. This is my Task 6 post in the Steemit Crypto Academy. I am going to attempt question number 1 which is asked by the professor in the lecture's post. So, I am going to take a start.
What Is Proof -Of -Work :
Proof of work (PoW) necessitates evidence of some form of work. Bitcoin miners must do this job before any of their blocks may be accepted by others.
Because work is extremely difficult, PoW minimizes the risk of a 51 percent attack.
No single miner will be able to dominate the Bitcoin network. Based on the Hashcash Proof-of-Work technology.
Before proposing a new block, the miners must demonstrate that they have completed some work.
At the same time, each answer is simple to validate by the community. This makes it simple to verify the legitimacy of all transactions.
PoW also imposes a limit on the number of new data blocks that can be created. Miners can only create a Bitcoin (BTC) block every 10 minutes, for example.
It does not use any third-party transactors. This creates a network that is "trustless" and transparent.
Monopoly can become more powerful with time.
What Is Proof - Of -Stake :
Proof of stake (PoS) requires users with a large stake in the currency (i.e., a large number of coins) to decide on the next block. There is a strong chance that one party will have a monopoly on the money, although there are numerous ways to avoid this (by allocating random stakeholders to agree on a new block, and others).
The size of a person's stake determines the likelihood of validating a fresh block.
The validator does not receive a block reward; instead, they are compensated with network fees.
Peercoin was the first cryptocurrency to use the PoS consensus model in its entirety.
Monopoly and Power Consumption are dealt with.
Advantages and DisAdvantages Of POW
Advantages of PoW:
DDoS-assault protection
Low amounts of cryptos held by miners have a limited impact.
Users' malicious activities are restricted.
The disadvantages of PoW:
Because a good processing computer is required, it is extremely costly.
Additional accessories for a PC might be quite costly.
Because there are a finite number of Bitcoins, mining is becoming increasingly difficult.
There are a lot of complicated problems and computations that aren't necessary.
As a result, the blockchain becomes more centralized rather than decentralized.
It uses a huge and great deal of energy.
Advantages and DisAdvantages Of POS
Advantages of PoS:
The system maintains its decentralized nature.
Pos has a lower energy cost.
Because there is no need to install expensive mining equipment, it is less expensive.
It improves the network's security.
The disadvantages of PoS:
With a majority stake, fraudulent behaviors are possible.
It can sometimes simply benefit the wealthy, making them even wealthier.
The next validator isn't able to do his task.
In the event of fraud, a person could lose everything he or she has worked for.
which one is good in scaling capacity
We examined their differences and determined which of the two is superior. We also looked at the benefits and drawbacks of both and studied them thoroughly. After examining anything, I believe proof-of-stack is superior to proof-of-work. Because proof-of-work has a number of Kraftwerk's and is an older method, whereas proof-of-stack is a new method with less drawbacks. Furthermore, the proof-of-work translation pace is very slow, yet the proof-of-stack transaction time is very quick.
After conducting extensive research, I have concluded that Proof-of-Stack has a far higher scaling capacity than Proof-of-Work.
Examples:
- Solana (Sol)
- Cardano (ADA)
- PolkaDot (Dot)
- ETC
Thanks to all of you. Hopefully, all of you, friends, will like this post. Special Mention to dear professor @dilchamo to have a look at my post.
Regards: @allahnawaz03
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