Different types of Consensus Mechanisms - Steemit Crypto Academy Season 4 - Homework Post for Task 3

Hello my dear friends today I came to this plateform to complete this task or we say homework so let's start so first of all the question is -

1.What is the difference between PoW & PoS? Advantages & Disadvantages? Which one is better in scaling Capacity? Examples?

So because we are going to discuss the difference between PoW and PoS we should know first what is PoW and PoS so let's start with PoW

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PoW -

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it means proof of work which is used by number of blockchains as a technology because the blockchain system may be affected if the verification of the transaction in the process or system is affected and trouble may be solved by family worker certificate and it is the first most popular consensus mechanism in terms of market capitalisation of network of blockchain and it was first launched introduced with bitcoin and Bitcoin became the first mostly adopted application of finney's PoW idea
Now next PoS
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PoS -

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it means a proof of stake and it is the second most popular consensus mechanism after PoW in terms of market capitalisation of network of blockchain it is used to validate transaction of cryptocoins because of this the owner of cryptocoins are able to stake their cryptocoins by this they get right to check new blocks of transactions and also able to add them to the blockchain so this the best option or alternative to proof of work

Now come to the difference between PoW and PoS .

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1- participants are called by different names in these like in PoW participant are called miners
And in PoS participants are called forgers or validator .

2-mining capacity depending on computational power but in PoS forgering capacity depending on the stake in the network .

3-mining produces or from new coins but in proof of stock no new coins are produced and formed .

4- miners received rewards of block in case of validators they received transaction fees .

5- huge energy is used in proof of work but In case of proof of stake low to quite high energy is used

6- in proof of work significantly prone to 51% attack in case of proof of stake it virtually impossible to 51% attacks

7- Proof of work is very expensive due to hardware requirements. Hardware consumes a lot of energy but in proof of stake the Hardware and electricity bills are cheaper in PoS because it does not carry the entire network.

8- The reason for the POS signal extraction was the complete hardware-based POW. As we all know, mining uses hardware but in case of proof of stake it depends on the amount of inventory produced by the inventory auditor. This is one way to reduce your hardware requirements.

9- POW algorithms increase signal delivery on the blockchain but in case of proof of stake The algorithm cannot add blockchain stains instead of displaying chips in the pool. This is very useful because supply and demand need to be balanced.

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Now we discussed the advantages and disadvantages of PoW and PoS :-

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So start with PoW :-

Advantages :-

1- It is very secure as when edits a particular block incorrectly it affects the entire blockchain and hence rejects the altered block.

2-This protocol also produces a decentralized network which is the Paramount or chief basis of Cryptocurrency activities.

Disadvantages:-

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1- This consumes tons of electricity and amounts to a lot of bills to pay, making the system very cost and energy ineffective.

2- it has very limited scaling capacity meaning that compared to its alternates, PoW can handle lesser transaction blocks due to the fact that a limited number of blocks can be confirmed per second. This also depends on the speed of processing the required minimum number of zeros for the hash of a block.

Now PoS :-

Advantages :-

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1- This system is energy and cost efficient since it doesn't require so much resources to execute.

2- proper validation is incentivized hence producing a higher level of transparency. Since it is known that miners are given transaction or network fee, they lose the stakes if they approve a fraudulent transaction. This encourages a decent level of accountability in the blockchain.

Disadvantages:-

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1- Proof of Stake raise the foundation for a decentralized network, trying to badly damage the main foundation for the crypto currency system.

2- The PoS is centralized and less secure, hence could be vulnerable to low quality attacks thereby bringing damage to user investments.

Now in conclusion which one is better in scaling capacity :-

From my point of view I would conclude that the proof of Stake is better in scaling capacity than the PoW, given the fact that the Proof of Work (PoW) limits scaling capacity.

Below we can introduce the crypto currencies that use PoS.
{source}(https://images.app.goo.gl/YxJv38sD8cuHj6eu8)

Ethereum
NXT
Cardano
Algorand
Raydium
NEO
BNB
NOW
Dash

Ethereum is one of the leading cryptocurrencies based on the Proof Of Stake concept. The second phase of the development here has focused on development from the beginning. 32 Eths must be invested to validate this.

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Conclusion

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Thanks Professor @sapwood for this lecture. I was able to learn about Pow and Pos through your lecture.