Blockchain Consensus Mechanism - Steemit Crypto Academy Season 4 - Homework Post for Task 6
Greetings everyone am here again to complete my assignment on Blockchain Consensus Mechanism lectured by@sapwood. Below are the questions and answers stay tuned.
What is the difference between PoW & PoS? Advantages & Disadvantages? Which one is _better in scaling Capacity? Examples?
Before I go in details I will giving you a hort description on the Definition of Proof of Work and Stake.
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Proof of Work
Proof of Work is a type of cryptographic whereby a party needs to prove that a specific Computational effort that have been spent. Validators can always confirm this expenses with the minimum within their power.
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What is the difference between PoW & PoS?
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Photo CreditDisadvantages of Proof of Work
1)
Advantages of Proof of Work
Photo CreditAdvantages of Proof of Stake
Disadvantages of Proof of Stake
Which one is better in scaling Capacity? Examples?
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Proof of Stake
Proof of Stake consensus mechanism that is use to confirm cryptocurrency transactions. In this system people with cryptocurrencies stakes their coins, in return giving them the right to check for new blocks of transactions and then to the block-chain.
| Basis | Proof of Work | Proof of Stake |
|---|---|---|
| Working | authenticity of transactions are set by solving cryptographic puzzles | authenticity of transactions are set on the basis of ‘stake’ in the network |
| Chances of Mining | The chances of mining depends on computational work done by the miner | Chances of authentication of a new block hopes on the number of coins a person possess |
| Energy Use | Proof of Work consensus has less energy efficient with low cost | Proof of Stake consensus has high energy efficient with high costs of resources and also energy consumption |
| Security | spending on blockchain could help hackers gain control over 51% of computation power for carrying out dangerous attacks. | It is hard for hackers to have 51% of stake in a blockchain network. |
| Rewards | First miners are rewarded for helping solving the cryptographic puzzle for every block. | corroborators dont receive any block reward and settle for network fees as their reward. |
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There are many Disadvantages of Proof of Work, but I will be giving two primary disadvantages of Proof of Work.
1)
The Proof of Work system waste a lot of energy, making it very bad for the environment. In a situation where computers carries out extra computational work, the more electricity is used. This process might add more amount of excess electricity consumption. This process has made Proof of Stake a greener alternative.
- Proof of Work block-chains gives room for sufficient security when there is a large number of miners competing for rewards. In a case whereby the miner are not much there is every possibility that hackers could gain access to the network computational power known as 51% attack.
- Proof of Work are better way to deter spammers. For example if there is an amount of work is needed a particular process (sending emails) there will be enough computational power for spammers to send a huge number of unrequested emails.
- Proof of Work gives maximum security to a network where there is much miners.
- It uses a Proof of Work consensus mechanism. In a case where enough computers are competing for a specific solution then the power needed to overwhelm and control a network that becomes unreachable for any single bad actor.
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They are energy efficient
Transactions on Proof of Stake are faster and inexpensive.
It don't need a special equipment to participate.
They are not as authorized in terms of security as proof of work.
Users on Proof of Stake with much coins can have much influence during Transaction verification.
Some currencies on Proof of Stake requires locking up staked coins for a little amount of time.
Prof of Work is used and tested in many crypto projects. But for a scalable capacity, Proof of Stake algorithm provides a more scalable block-chain with a higher transaction and few coin has adopted the method like DASH coin and many others and also it is less secure than Proof of work.
@sapwood here is my assignment Thanks 😊
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