Crypto Academy Season 3 Beginners' course - Task 4: Different types of Consensus Mechanisms
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QUESTION 1
What is the difference between PoW & PoS? Advantages & Disadvantages? Which one is better in scaling Capacity? Examples?
| Proof of work (poW) | proof of stack (poS) |
|---|---|
| Miners do some mathematical puzzle and computation which is also called mining , first miner to solve the calculations get rewarded | Block validation is used, It does not require mining rig and miners take transaction fee as their reward. |
| Less energy efficient | more energy efficient |
| More secured | less secured. |
| Winners are chosen according to the person with the most powerful hardware | Winners are chosen according to the amount of they have staked. |
| Miners always compete to be the first solve the puzzle so as to get rewarded | The more stake the higher the chance of getting Validated. |
PROOF OF WORK
Proof of work is a decentralized blockchain network that require solving of mathematical puzzles for transaction validation.
Its a decentralized network where anyone can participate in, its very secured in that all transaction done on it is kept safe and everyone is free to do any transaction without any third party or middle man.
Advantages & Disadvantages of (poW)
ADVANTAGES
Proof of work is more secured
proof of work is built on decentralized system
proof of work is hard to attack because is under a blockchain
proof of work is faster
DISADVANTAGES
proof of work is less energy efficient
proof of work is limited in scaling capacity
proof of work consume more energy
proof of work is more costly
proof of work require a very skillful person to partake in the calculations.
mining is required
PROOF OF STAKE
Proof of stake is a centralized blockchain where validators are chosen based on the proportion of stakes,it is very efficient in energy and does not require mining rig. Proof of stake does not allow everyone to partake in it validation process, in this validation process the person with the highest stake had the highest probability of winning and the reward people with transaction or network fee.
ADVANTAGES OF POS
proof of stake does not need any calculations
The higher your stake the more you have higher chance of winning
proof of stake more energy efficient
proof of stake offers more reward
DISADVANTAGES OF PROOF OF STAKE
proof of stake is less secured
proof of stake is not on decentralized network
proof of stake is (centralized)
only one person have higher chance of winning
Not everyone can participate
Which one is better in scaling Capacity? Examples?
Proof of stake (PoS) is more better in scaling capacity than proof of work(poW) in that, it has more energy efficiency to attract stakeholders to get better reward and here miners put their own coin on a block not check transaction on the block. But in proof of work (PoW) not every miners get reward, only the winner gets the reward and it requires some calculation puzzles to validate transactions and minners dont like to stress their self because to solve the puzzle someone has to be very efficient and skillful, all the reduces the scalability of (PoW) but (PoS) doesn't require any form of calculations.
Example of coin using (PoS)
STEEM
Raydium (RAY)
Binance coin (BNB)
Tezos
Decentral Games ($DG
Akash Network (AKT token)
DASH
NAV COIN
Examples of coin using (PoW)
Bitcoin (BTC)
Ethereum(ETH)
CONCLUSION
proof of work and proof of stake have their merits and demerits to the crypto world as a stakeholder or invest when need to watch both of them closely to know the best to go for but for me I will rather go for proof of work because it under a decentralized network and its very secured.
Thanks to @sapwood for this amazing lecture.