Cryptoacademy season4// beginner's course-homework post for task 6- consensus mechanism for professor @sapwood
What is the difference between PoW & PoS?
PROOF OF WORK.
Proof of work is the short form of POW,This is known to be a mechanical consensus which always need all the users in the blockchain to make an attempt to find answers to mathematical questions in the blockchain,Because of this the blockchain is complicated which makes it hard for users to make some innovations.Each time a lot of users start to participate in the blockchain it increase the ability of finding answers to this mathematical questions,The miners happens to be the people who are always given prizes when they are able to find accurate answers to the mathematical questions in the blockchain.Usually in the proof of work it requires a lot of vitality from users to operate the blockchain and this is going to make the charges in controlling the blockchain very expensive.When answers are found to the mathematical questions it also lead to develop new block in the blockchain,And also the POW happens to be a decentralized system where all users are having a fully control over their assest,Without the engagement of mediators or intermediary,Here are some example of POW token we have the Bitcoin, Ethereum etc.
PROOF OF STAKE.
Proof of stake is the short form of POS,It is also a mechanical consensus where users are found of validating the blockchain,This differs from the POW because in the POW users rather mine but do not validate.When users are validating the blockchain it always depends on the total token he or she has in the blockchain and this is going to give the user the capability to mine.In the proof of stake it does not need users to be finding answers to mathematical questions and also do not requires high potential from users before using the blockchain unlike the PoW,This make the charge of controlling the blockchain less expensive,Many transactions can be run at the same time at a very fast and easy time on the POS and it also has an active potentials.
| POW | POS |
|---|---|
| Ethereum,Bitcoin are all an example of token in the POW | Tezos,cardano are all an examples of token in the POS |
| Many transactions cannot be performed at the same it may slow | Many transactions can be performed at the same and it is very fast |
| All miners are always given prize in form of blocks | All the validators are always given prize in form of transaction charges |
| Users need a high potential before they can operate the blockchain and it also takes a lot of time | Users need a low potential before they can operate the blockchain and it also does not take time |
| User using the POW are always found mining | Users using the POS are always found staking |
| It needs more potential for controlling the blockchain,So the charge are very expensive | It do not needs more potential for controlling the blockchain,So the charge are very less expensive |
ADVANTAGES OF PROOF OF WORK.
All transactions charges on POW are very less expensive.
It is known to be a decentralized system, Where users are having a fully control over their assests and no third parties are engaged in transactions.
Because users always have their capitals in wallet it reduces excess squander unlike the fiat currency users can use anytime.
Each time any miner is able to find answers to the mathematical questions,The user is always given a prize for a block.
It has a very high protection from all hackers.
DISADVANTAGES OF PROOF OF WORK.
It is having a very low evaluating potential,This tell us that I can not run three or many transactions together at the same time.
When users run transaction the time of carrying out is very slow.
It need more potiential before operating the blockchain, So this make charges of controlling the block very expensive.
it also spend a lot of time since it very hard for users to find answers to the mathematical questions given so it really takes a lot of the users time.
ADVANTAGES OF PROOF OF STAKE.
It is having a very high evaluating potential,This tell us that I can run three or many transactions together at the same time.
It has a very high protection compared to the POW, This makes it very hard for fraudsters or hackers.
It do not need a lot of potential in operating the blockchain unlike the POW,This help to make charges of controlling the block very less expensive.
When users run transaction the time of carrying out is very quick.
DISADVANTAGES OF PROOF OF STAKE.
Users transactions charges is very high compared to POW.
Users are not able to run transactions each and every time,There are limitations when it come transaction,Once the user over use the limitations he must wait for sometime before next transaction can be done.
Any time a user staked his or her coin it becomes untouchable till the staking period is reach.
Till date no one has been able to confirm that POS is reliable or not reliable when it come to protection.
From the advantage of POW and POS listed earlier,I was able to found out that the POS is having the best scaling capacity since it can run more transactions at the same time and it is also very fast,Also it well protected from all hackers and do not need much potential to operate it blockchain so it doesn’t need much charges to control the blockchain,When you compared to the POW.
EXAMPLES.
NAV.
The full meaning of nav is net assest value,Usually it operates on a very quick transaction activities and it is of high privacy.
DASH.
The full meaning of dash is digital cash and happens to be the first ever cryptocurrency to be utilizing the proof of stake.
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