Season 3 Beginners' course Task 4 Homework Post For @sapwood Different types of Consensus Mechanisms [PoW & PoS]- by @gida
Am here again after a very educating lecturer with @sapwood on consensus mechanism and here to share my answers to some of the questions being asked it was abvery interesting topic to tackle and am glad i am in this class .
What is the difference between PoW & PoS? Advantages & Disadvantages? Which one is better in scaling Capacity? Examples?
Difference between Proof of Work & Proof of Stake
| Pow | pos |
|---|---|
| It is energy inefficient | it is energy efficient |
| Miner use computing power to reach consensus | stakers use their stake to reach consensus |
| It is decentralized and more secured | it is centralized and less secure |
| The first confirmation by miner determines the mining block | a new block here is set by how big your stake is |
| The miners receive a reward for solving puzzles | the validator do not get a reward they take network fee |
| It is more costly a lot of money is used in buying technological devices | is less costly |
| It is faster | less faster |
Advantages of Proof of Work
•it is a decentralized network you are your own boss it enables you to work at your own pace .
•it is very difficult to hack into the system since it is run on a decentralized basis .
•this system motivates miners since they get rewarded for solving puzzles.
Disadvantages Proof of Work
•it is very expensive to mine.
•it consumes more energy making the environment and other offices low power for low productivity.
• it is a decentralized network and so there is less work input by workers there less law and order in working working leading low income.
•there is less profit since more money is been used to reward miners.
Advantages Proof of Stake
• it is energy efficient it need kess enery to Work with
•It attracts investors to earn a great reward since it is friendly and enery efficient.
•it is centralized abd fster to Work since decision make is easier and much faster.
• it is user friendly with a littke experience in this network people can participate in the staking process.
Disadvantages of Proof of Stake
•It is less secured campared to proof of work .
•it can be be easily hacked to acess its content since centralized system security is mostly poor.
Which one is better in scaling Capacity? And Examples
PoS scales more effectively current holders stake their coins to work with transactions as opposed to mining them.
proof of work(PoW),when the winner gets reward and every other person doesn't. Each staker is basically given a prize to boost investment in PoS.
Prizes depend on the amount of coins staked. So while more stakers get more rewards. Little stakers get little reward.
Considering productive scaling since, in such a case that demands develops the coin develops until there is an excessive amount of supply and the prize is decreased. in PoW, the more successful the coin becomes, the more complicated the puzzles becomes, making it hard to solve hence,decreasing it’s scalability capacity. This is why PoS have more abilities than PoW.
Examples of coins using PoW are BTC and Ethereum(but with plans to use PoS)
Examples of coin using PoS are NEO,NXT,
Conclusion
Its was a a great lesson professor @sapwood leranibg about pow pos and many more am looking forward to learning more from you prof.
Thanks your attention.