Crypto Academy Season 3 Beginners' course - Homework Post for Task 1: [Difference Between PoS & DPoS] given professor @sapwood
INTRODUCTION
Hello friends, I welcome you to my homework post in this season 3 lesson of our Cryptoacademy. First and foremost, I table my appreciation to our Noble professor @sapwood for his delegent and vibrant work his has been doing. My Noble professor I say thank you for your wonderful lesson which has make it possible for me to know some useful things in the blockchain network.
Homework Task
Question No: 2
What is the difference between PoS & DPoS? Advantages & Disadvantages? Name a few Blockchain projects which use the DPoS consensus mechanism and indicate the scaling capacity?
Answers:
The difference between PoS & DPoS
The difference between PoS & DPoS is summarized both in tabuler form below for a better understanding,since the both are two different consensus algorithms that is used in blockchains, let's start my looking at them.
Proof of Stake (PoS)
In a PoS a users is expected to have a high stake at the coin they hold. This mean that the more coins that a miner owns, the more advantages they can get. PoS was created as another means to Proof of Work (PoW) that was the primary consensus algorithm rule utilized in blockchain. Although, POW takes up Brobdingnagian amounts of energy and miners eventually had to sell their coins merely to pay their electricity bills. It’s conjointly not the foremost environmentally friendly choice – for obvious reasons. PoS is additionally thought-about to be a safer choice than DPoS, because it discourages miners from offensive the network when mining. Also in PoS the greater the amount that a miner stake, the longer the duration will be,the staked will possibly more opportunities of transaction validation will be. All the altcoins has already been created in PoS of which no new coin is available for minting but transaction fee that is available for staker.
Delegated Proof of Stake (DPoS
DPoS which stand for Delegated Proof of Stake is a consensus algorithm that works to take care of positive agreements in all blockchain network,which stand out as a digital democratic system and also validate transactions. DPoS brings real time voting with a system based mostly off of name achieve consensus within blockchain network which is different from PoS. In DPoS every token holder incorporates a say in what happens on the blockchain network. Although, the voting power of the token holder will be determined by the percentage tokens needed. Also in DPoS, delegates are normally voted in by token holders. They work is to confirm their node is often running swimmingly, to validate transactions, and to figure things within the network at all time. The Delegated Proof of Stake make sure that. The network is self governed by all it's users.
PoS and DPoS Difference in Tabuler Form:
| Major difference | PoS | DPoS |
|---|---|---|
| Validation & block creation | in PoS the forger is selected in a very pseudo-random means on the premise of the users stake. Users that has more coins at stake has the opportunity to validate transaction and make new coins | In DPoS users vote to choose the witnesses who would will validate transactions. |
| Mode of Governance | The ethics within the PoS blockchain are haredcoded within the Genesis block. Any modification within the block means that a fork within the protocol. | In DPoS chosen delegate is responsible in managing and governing the blockchain network. They will propose changes to the protocol and implement them when obtaining approval by the users. |
| Transaction Speed | In PoS transactions are processed in higher speed | DPoS involves the features of PoS, that is faster transactions, energy saving, and also don't need large computer hardware. |
Advantages of the PoS
Some of the advantages of PoS is stated below;
In PoS users will contribute simply by staking coins into their wallet
Blockchain consensus can be reached digitally.
Users don't got to build huge mining operations, but instead they will earn rewards merely for holding and staking a coin.
PoS is a lot environmentally friendly than DPoS or any other consensus algorithm.
Disadvantages of the PoS
Some of the disadvantages of PoS are stated below;
PoS can result in signboard in such a way that the coins you have, the more power you've got.
The system can easily be attack as an attacker would wish to accumulate only 51% percent of the cryptocurrency among that system.
Advantages of DPoS
Some of the advantages of DPoS are stated below;
DPoS permits to maximize the profits of the holders of a tokens. This is often as a result of as they need a lot of tokens the a lot of participant they need within the network and also the a lot of blocks they will produce.
In DPoS delegate voting system is quick, you will be able to quickly discovered block producers in every spherical. The direct results of this is often an obvious improvement within the scalability of the blockchain network.
There is Decentralized participation within the network. This is thanks to the fact that DPoS relates the participation within the network with the quantity of tokens that every users has.
The parallelization achieved by DPoS permits high performance and measurability. For instance, on the EOS blockchain, 0,5 blocks produce every flip (126 seconds). this offers us a high dealing capability that these blockchains are able to do.
DPoS help to optimize the use of network resources like bandwidth, CPU and the rest of them.
Disadvantages DPoS
The success of the network needs the coordination and participation of the genuinely interested community for good governance.
DPoS reveal the blockchain to failures associated with the voting system. For instance users with little bets could decide that their vote isn't important compared to the votes of large users.
In DPoS some of it detractors of the model usually argue that the protocol promote centralization. This is as a result that legal system can continually get to decide on those that have a foremost tokens.
Name a few Blockchain projects which use the DPoS consensus mechanism and indicate the scaling capacity?
Some of the few Blockchain projects which use the DPoS consensus mechanism are;
BitShare: BitShare is a blockchain project that is created by Daniel Latimer to works as a decentralized exchange, which is the first blockchain project. Other projects that make use of the DPoS consensus are;
EOS
Lisk
Ark y Tron
All of the aforementioned blockchain projects have thesame characteristic in common with high Scalability.