Different types of Consensus Mechanisms - Steemit Crypto Academy Season 4 - Homework Post for Task 3
1.)What is the difference between PoW & PoS? Advantages & Disadvantages? Which one is better in scaling Capacity? Examples?
WHAT IS THE DIFFERENCE BETWEEN POW & POS?
Proof of Work
•POW (Proof of Work) it is a machanism it requires a lots of computing effort to calculate mathematical problems and then able to transaction and the record is stored in public ledger of Blockchain and in the form of hash.
• In this time there a team available/Capable for performing mining operations by the pow consensus mechanism and this is according to their system capacity means when more the capacity the mining time is reduced and by this you can create block and earn rewards and POW is Decentralized mechanism and POW is slower.
• In the POW the selection of miner is random first the POW ensures better degree of Decentralization but in the limit scaling capacity.
Proof of Stake
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• POS (Proof of Stake) it is a authentication method and it is used by Blockchain network. In the POS the user can successfully cryptocurrency transaction and the percoin was launched in 2002 and it was the first cryptocurrency to use POS.
• POS has higher energy as compared to POW and this is because mining does not need powerful computer equipment in this the user block tokens and the other person token will return to the transaction fee.
• Proof of stake is Centralized system and many more platforms need to adopt this platform and the proof of stake is less expensive as compared to proof of work.
Difference between POW and POS
| POW | POS |
|---|---|
| 1.POW requires more electricity to create a block as compared to POS. | 1.In POS it is not requires more electricity as compared to POW. |
| 2. POW is slower it so much time. | 2. POS is faster than POW. |
| 3.POW is costly because pow requires a heavy hardware equipments and the hardware consumes more energy. | 3.POS is cheaper because it doesn't requires heavy hardware because it not carry entire network that's why this is cheaper and the electricity is also less. |
| 4.POW is totally Decentralized | 4.POS is Centralized. |
| 5.The security of POW is always higher means no one can hack this. | 5.The security of POS is not high there always risk of hack. |
| 6.POW is more expensive as compared to POS. | 6.POS is less expensive as compared to POW. |
Advantages & Disadvantages
Proof of Work
| Advantages | Disadvantages |
|---|---|
| 1.Proof of work models make blockchain networks means it is more difficult to hack and it makes its more costly. | 1. It takes more energy and more hardware requirements and electricity bill will also more and it makes it costly. |
| 2.POW is dependent on computational abilities means No matter how difficult the puzzle is, it solves it very quickly. | 2. POW need more hardware requirements to solve harder puzzles and it makes it more costly. |
| 3.Anyone can join this. | 3. Percentage of attack on this is 51%. |
| 4..... | 4. It is slow. |
| 5. In this if any of user have a high hash rate So he can create a new blog. | 5. It is a system where rich miners is rewarded and the poor is rewarded with the less reward. |
Proof of Stake
| Advantages | Disadvantages |
|---|---|
| 1. POS is cheaper because there is less energy consumption. | 1. Disadvantage of POS is it not have the power to sell and generate pos coins together. |
| 2. The speed of POS is faster than POW. | 2. The Security of POS is not verified. |
| 3.In this the transaction fees is less. | 3. POS have a liquidity. |
| 4. It has more scalability. | 4. There is high risk of hack. |
Which one is better in scaling Capacity? Examples?
Which one is better in scaling Capacity?
In my opinion the proof of stake is better mechanism for scaling capacity because it reduces the reduces the risk and my another of choosing this is it consumes less energy as compared to proof of work and it is cheaper because it doesn't requires costly hardware that's why this is cheaper.
Examples
TEZOS
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Tezos is Decentralized and it is open source of Proof of Stake Blockchain network and it is the first cryptocurrency using POS.
NAV
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NAV Stands for Net asset value and it have fast transaction and high privacy.
DASH
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DASH Stands for digital cash and it is also used by POS.
CONCLUSION
Today I learnt about POW and POS consensus mechanism and I am glad to answer these questions very easily thank you professor @sapwood for this beautiful lesson and thanks again professor.
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