CRYPTO ACADEMY SEASON 3 BEGINNER'S COURSE- HOMEWORK POST TASK 4: CONSENSUS MECHANISM FOR PROF. @sapwood

predomina (63)Beginner[2,4,5,6,7]in SteemitCryptoAcademy • 3 years ago

Hello guys,
It's a pleasure in my part to continue with the introductory courses in the steemit crypto academy. Having attempted Task 1-3, I am here to perform task number 4. Stay tuned as you read through my blog for the assignment task.

Source

Question: WHAT IS THE DIFFERENCE BETWEEN PoW and PoS? ADVANTAGES AND DISADVANTAGES. WHICH ONE IS BETTER IN SCALING CAPACITY? EXAMPLES?

WHAT IS THE DIFFERENCE BETWEEN PoW and PoS?

PoW: PoW which stands for Proof-of-Work, is an algorithm that is used to solve complex mathematical problem via a process of mining and who ever successful solves this complex mathematical problem has successful created a new block, and also a block reward reward is given to the person at the end.

PoS: Just like the PoW, the PoS which stands for Proof-of-Stake is also an algorithm that is use to mine and the user who is involved get some reward at the end as well. Now, user involved in this type of mining stakes his or her asset and then get a reward at the end of the staking. It's is important to state here that the higher you stake the higher the reward you get. This type of staking doesn't involve solving complex mathematical problems before you are rewarded.

The table below shows more differences between Proof-of-Work and Proof-of-Stake.

S/No.	Proof-of-Work	Proof-of-Stake
01.	It involves solving complex mathematical problems to get reward	It involves staking of asset to get reward
02.	Lots of energy is taken to get reward	Does not require any energy to get reward
03.	Equipment use here are expensive	You don't need any equipment hence getting reward here is less expensive
04.	Reward are gotten from a pool	Reward are gotten from a block.

ADVANTAGES AND DISADVANTAGES.

I will be presenting both the advantages and the disadvantages of PoW and PoS in a tabular form below.

Advantages & Disadvantages PoW

Advantages	Disadvantages
There is competition on who finishes the task first hence it makes it very fast	Mining tools are very expensive so it requires lots of money
Due to it decentralized nature, it's difficult to attack	Consumes lots of energy
Here the transaction carried out are usually very accurate	Transactions here takes a longer time to process

Advantages & Disadvantages PoS

S/No.	Advantages	Disadvantages
01.	Does not require much energy to validate	Coin staking alone increases the rank of validators
02.	Does not require expensive mining tools	You must have certain amount before you can stake
03.	Has very high scalability hence can process transaction very fast	More stake gives you more reward but less stake gives you less reward so those who are rich are always in charge

WHICH ONE IS BETTER IN SCALING CAPACITY? EXAMPLES?

Scalability is the ability of the algorithm to still function properly despite any form of change that comes into it. For instance, if the algorithm was designed to accommodate 10,000 transaction in a second, and an alteration is done for it to now accommodate 20,000 transaction, the algorithm will be able to adopt to the change without affecting the functionality of the process. Now, the algorithm that can be scalable enough as this is the PoS algorithm. So in conclusion the one better when it comes to scaling is the PoS algorithm.

Examples of PoW and PoS are seen in the table below.

PoW	PoS
Bitcoin	Peercoin
Ethereum	Tron
Ethereum Classic	Neo
Litecoin	Binance coin

CONCLUSION

In conclusion, I want to sincerely appreciate the steemitblog for such a wonderful initiative use to in organizing this very program and the professor in the person of @sapwood for such an amazing lecture. I have really learnt a while lot from this task as I can now say clearly the difference between PoW and PoS and how they both work.

#academy-intro04 #cryptoacademy #steemexclusive #steemit #krsuccess #nigeria #steemitblog