[Different types of Consensus Mechanisms ]- Steemit Crypto Academy Season 5 - Homework Post for Task 6.||by @amadib

INTRODUCTION

Hello steemian, it been a wonderful moment to participate in the task 6 of season 5 of beginners task that is all about the different type of consensus mechanism. I will give my answer to the question to this task.

QUESTIONS

WHAT IS THE DIFFERENCE BETWEEN PoW & PoS? ADVANTAGES & DISADVANTAGES? WHICH ONE IS BETTER IN SCALING CAPACITY? EXAMPLES?

WHAT IS THE DIFFERENCE BETWEEN PoW & PoS?

POW(Proof Of Work)

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The proof of work is the type of consensus mechanism that does not need any third party intervention or central authority whenever the user want to perform transaction in others, it is decentralized. Here the team members which are known has miners have a tasks of solving a complex puzzle mathematically and the first miner to solve it is always rewarded.

The security system here is always here which makes it very secure from hackers, and it also make use of high energy which makes the cost of management and maintenance also very high though the scaling capacity of the POW is poor which means that it doesn't have the capacity to execute so many transaction at a time simultaneously and the rate at which transaction is charged here is low.

Examples of the pow are litecoin, ethereum classic, bitcoin, bitcoin cash etc

POS(proof of stake)

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The proof of stake is the type of consensus mechanism that blocks are being validated by the user and it depends on the token number that the individual have.

When it comes to proof of stake, it is the token that the individual have that determines the individual mining power in his or her possession unlike Pow, in Pos it requires a lower energy which means that it does not need more funds and cost in management and maintenance but the security level here is low which makes it prone to hacking.

The proof of stake has the ability to execute so many transaction simultaneously in a faster speed rate and by this it means that it has a very good scaling capacity with an efficient energy.

Examples of POS are Tezoz,Ripple, ethereum, NEO etc

THE DIFFERENCE

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• In POW has earlier said, it has a very good security system which make it more secure from hackers while the POS has a low security which makes it prone to hackers.

• The acronym of POW is proof of work while the acronym of POS os proof of stake.

• POW has a very poor scaling capacity which means that more transaction can not be executed simultaneously while the POS has a better scaling capacity which means more transaction can be executed simultaneously.

• The rate at which transaction is being charge in POW is low compared to the rate at POS which os high.

• In POW, the miner that successfully solve the complex mathematical puzzle is being rewarded with block while in POS the individual with highest token is rewarded with transaction fee.

• Examples of POW are Bitcoin, Litecoin, Bitcoin cash, Ethereum classic etc while Examples of POS are NEO, Tezoz, NXT coin, Ripple etc
  

  
  
  

ADVANTAGES OF POW

• They security system here is very high the individual confidence and trust about his fund safety will be high too

• Has earlier said, here there is no need for third party when an individuals want to perform transaction

• Reward of a block is given to a miner that can successfully solve the mathematical puzzle.

• The rate at which transaction is charged is always low.

• Energy here is efficient.

DISADVANTAGES OF POW

• Energy that is being required to here is at high amount.

• it is has poor scaling capacity which means that so many transaction can not be executed simultaneously.

• There is alot of energy waste here

• Due to the fact that high energy is required the cost of managing it also is high

ADVANTAGES OF POS

• unlike the POW, the energy that is being required here is low.

• Low cost is being spent here in managing and maintaining this type of consensus.

• Here, so many transaction can be executed simultaneously which means it has a good scaling capacity.

• In this type of consensus, Energy is not wasted.

• The validators here have a reward of transaction fee.

DISADVANTAGES OF POS

• POS has a low level of security and by this means it is prone to hacking.

• The rate at which individual is charged here is high.

• It is for high class people not for people with low class

• Here stake coin can not be sold until it is unstaked.

WHICH ONE IS BETTER IN SCALING CAPACITY? EXAMPLES?

scalability has to do with the number or ability of the system to execute so many transaction simultaneously and has earlier said it is the proof of stake that has the better scaling capacity which means here it can be used in executing so many transaction at a given period of time simultaneously without delay and a fast speed level here the individual doesn't pass through the stress of having to solve complex mathematical puzzle to get rewarded, here there is less energy that is required and the cost to maintain it is not high too

Examples of POS are NEO Tezoz, NXT coin, Ethereum, ripple etc

• Tezoz

Tezoz is an example of proof of stake that support all major exchange for staking and it local token is (XTZ).

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CONCLUSION

Am very happy to participate in this task which has to do with the different type of consensus mechanism, I have really been educated to know that the POS has a better scaling capacity than POW which means more transactions can be executed fast and simultaneously.
More thank to the prof @sapwood for the wonderful lecture and thanks to prof @dilchamo for grading.