Crypto Academy Season 3 Beginners' course - Homework Post for Task 4: consensus mechanism for professor [@sapwood]

in SteemitCryptoAcademy3 years ago

image.png

(1) What is the difference between PoW & PoS? Advantages & Disadvantages? Which one is better in scaling Capacity? Examples?

The idea behind this Proof Of Stake(POS) is that a person/user has the ability to verify block transactions according to the amount of coins they have. This means that the number of coins a person can mine is determined by the number of coins he/she stakes.

The Proof Of Works(POW) concept involves miners solving cryptographic puzzles correctly in order to get the opportunity of getting rewarded by generating a block and adding it to the chain.

1_VMr0S-00QfEeL17wBebhgA.jpeg
source
Difference between proof of stake and proof of work

Proof of stakeProof of work
1) The verifiers get network fees as reward and do not receive block rewardThe first miner to solve the cryptographic puzzle of a block is rewarded
2) First investments are made in building their reputation by buying coins/stakefirst investments are made to purchase hardware
3) Thenumber of coins a person's holds is what determines the validator of a the new blockThe block miner is determined by the computational work done by the miner
4) The creator of the block is selected with a method of wagering their coins by locking them in a walletMiners compete to add block to chain by solving puzzles with the use of their computational power
5)Does not consume much energyrequires lots of computational energy

Advantages of Proof of stake

  1. The block validators get good rewards for wagering coins
  2. Does not consume much energy/ computational power
  3. It is reliable

Disadvantages of Proof of stake

  1. It has a less secure network

  2. It is a less decentralised network

Advantages of Proof of work

  1. There is a high level of security, thereby making it trust worthy

  2. The miners get block rewards

  3. It has a more decentralised network

Disadvantages of Proof of work

  1. There is a low performance in network

  2. There is high consumption in power and computing resources

  3. Miners can manipulate the block chain to their advantages when they hold 51% or more hashing power

  4. Causes waste of resources and affects the environment due to high consumption of power and resources

Which one is better at scaling capacity?
I think the proof of stake has a better scaling capacity than the proof of work because some tokens that operate with the POS is faster in making transactions.
Example
Bitcoin: The Bitcoin using the POW to reach consensus hand has the capacity of performing 7 transactions per second
Cardano: Uses POS to reach consensus and has the capacity of up to 1000 transactions per second

Cc:

@sapwood

Sort:  

Hello @olachi, I’m glad you participated in the 4th Task of the Beginner’s class at the Steemit Crypto Academy. Your grades in this task are as follows:

CriteriaRatings
Presentation / Use of Markdowns1/2
Compliance with topic1/2
Spelling and Grammar1/2
Quality of Analysis1/2
Originality1/2
Total5


Recommendation / Feedback:

  • I acknowledge the fact that you answered the questions in your own words. But i think your explanation are too shallow. You could have gone in-depth to make your points clear.
  • Also, There were some grammatical errors that can be avoided using Grammarly. So I suggest you use it in your preceding tasks.
  • You need to improve your writing skills by working on markdown styles.

Thank you for submitting your homework task 4. We hope to see the rest of your submissions.

Coin Marketplace

STEEM 0.37
TRX 0.12
JST 0.040
BTC 70162.45
ETH 3540.43
USDT 1.00
SBD 4.79