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Thank you Professor @Sapwood for such a kind lecture let's do my homework for the fixed assignment.

What is the difference between PoW and PoS?

Proof of Work POW:

It requires high quality computer equipment that will be used to solve complex mathematical algorithms to reach a consensus and in this way you can validate information by a hash will be recorded in a block so that it is impossible to reverse or edit.

Technology is advancing every day more and more, so right now in the world there are teams that are able to perform mining operations thanks to the consensus Pow, they create blocks and earn rewards for each block created, the teams tend to be somewhat expensive the more capacity they have the more expensive are the teams because they have more technology.

If we see in the world there are entities that are responsible for regulating the use of Pow mining equipment and the excuse is the cost of electricity in underdeveloped countries, so they usually according to some law, give temporary use licenses in exchange for a tax that must be paid to the state, must also be monitored by the relevant authorities to attest that the guidelines set out in the contracts are met gradually, However, in different businesses in Venezuela the sale of mining equipment of low and high range has already been authorized, so many people are buying the equipment and are being used clandestinely in Venezuela the electricity is not paid as in other countries, so a low cost equipment that generates about $ 5 in BTC is quite profitable daily. The minimum wage is very low, about 5$ per month.

mining is becoming the livelihood and life for each of the Venezuelans who are currently doing this activity, it is clandestine and very dangerous as it would be being easy target for the Venezuelan government authorities.

Proof of Participation PoS:

It works by validating transactions through nodes interconnected to the network, these validators are chosen for having large amounts of tokens in safeguard of the blockchain, also users participating in the ecosystem have the right to vote to elect the validators, however if any validator does not perform the work pautado can be changed immediately by another validator without problems. each of the validators must have much dedication to their work as this will depend on the work of the platform.

Unlike the proof of work, the proof of participation "POS" does not require any external device to be able to mine, but there is also the disadvantage that not everyone can be a validator, since they must qualify to be delegates, while in the proof of work anyone who buys an ASIC mining device, for example. S9 can mine quietly in countries like Venezuela and get about $ 5 currently daily for each machine you have at home.

Differences between PoW and PoS.

🔘PoW:

☑Decentralized and sought after by many users worldwide to be able to mine freely.

☑They are equipment that currently exceed 1000$ so not many people have that amount of money to be invested which also leads us to think about the risks if the BTC goes down then The Roi would increase for several more months or if the equipment arrives defective we would practically lose the money of the initial investment.

☑High energy costs in developed countries so equipment such as the S9 would be obsolete and you would have to buy an equipment of several thousand dollars more or less 12mil dollars to be able to work and to compensate the electricity system and the Roi to obtain.

☑The creation of a block lasts 10min.

☑High security

🔘PoS:

☑Centralized system and only a few in the world enjoy this mining benefit.

☑No need to purchase such expensive equipment just having a certain amount of token in the wallet is enough.

☑It does not consume energy and can be run from any computer and have access to the internet.

☑Block creation takes seconds.

☑Moderate security as it is centralized and pirates will look more for this type of system to hack.

Advantages and Disadvantages of Pow

☑It requires a high to moderate budget and a suitable location in addition to technical staff in order to establish a decent farm.

☑Anyone who has availability of the money and a good location can participate in the mining process.

☑It is decentralized.

☑Security and trust.

☑When you create a block the system gives you a reward and a place to create the next block.

❌ Money is the biggest obstacle to acquiring mining equipment.

❌ The regularizations of the countries affected by the crisis affect arduously on mining in that region.

❌ Some countries, such as China, prohibit the use of mining equipment.

❌ The process of creating each block is approximately 10min.

❌ With 51% of the nodes power you can attack the system.

Advantages and Disadvantages PoS

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☑It is a very fast protocol.

☑You only need to be connected to the internet.

☑To be a validator you only need to have a majority of tokens held on the blockchain.

☑You are not affected by regulations due to heat or electricity effects as they are on the blockchain.

❌ It is centralized

❌ Prone to attacks by hackers.

❌The token minting system depends on validators.

Which one is better for capacity scaling?

To scale the capacity is better the capacity test as it allows to validate more blocks than bitcoin for example that is every 10min by miners that consume a lot of energy and then this is converted into heat that is released and heat the environment, the PoS test, creates as transactions are faster in turn more blocks are created in a short time therefore the proof of participation currently leads the way to scale the capacity of the ecosystem.

Let's look at some examples

🔘Ethereum:

It is the second coin of the cryptos in coinmarketcap, known as the silver coin after the btc which is the gold coin, this Network has an ability to create applications through smart contracts on the blockchain, also millions of users prefer its platform for the creation of ERC-20 ERC-721 token the developers and C.O has mentioned in several opportunity that is to change the proof of work by the proof of stake in its 2.0 update so that in that way it no longer depends on miners if not proof of work.

🔘Tezos:
Currently ranked #10 on coinmarketcap in market cap this provides a staking of 7% annually many users are eager to belong to this great platform.

🔘Tron:

currently works with the Pos protocol is characteristic for its low cost of gas in transactions and operations within the Tron ecosystem many want it for this. also for its high capacity to create APPS within the ecosystem smart contracts, and much more a TRC-20 token that gives us a lot of advantages over the ERC-20 that really sometimes can have a much higher gas. it has a staking of 4% per year .

Conclusion

Culminating this research report we talked about POS AND POW Proof of Stake its advantages and disadvantages we also saw the clear references of a centralized and decentralized proof of stake how to be part of each of their ecosystem and the most relevant differences. currently the cryptographic digital ecosystem is constantly evolving every day the technology advances so that the future of the same is nice safe and that gives that confidence that all users deserve in this way maintain a clean and innovative free ecosystem.