Crypto Academy Season 3 Beginners' Course Homework Post For Task 4: Concensus Algorithm by @ryzsfa
Good day everyone,
Today am here to present my homework task 4, With this task it deals with different types of consensus mechanism which was assigned by prof @sapwood.
Questions
What is the difference between PoW & PoS? Advantages & Disadvantages? Which one is better in scaling Capacity? Examples?
1.) Difference Between Proof-of-Work and Proof-of-Stake.
Before we can no the the characteristics that distinguish proof-of-Work from the proof-of-stake.We will first need to know all their working principles.
Proof-of-Work
The proof-of-work protocol always works in the way that miners can mine and get reward from their block through finding answers to cryptographic puzzles.When the solving is confirmed,It is then set down on the register and will be added to the blockchain.
Proof-of-work is done in order for the nodes on blockchain to account for sincere transaction and to stop hackers from getting from the pool.
Proof-of-Stake
When it comes to this protocol,Operators in the blockchain are permit to mine and gain rewards from the block and their transactions will be confirm given that they possesses an amount of the digital currency of the blockchain.The possession of the digital currency will be serving as the “Stake” and since this is what will be used to get rewarded,The more higher the stake,The more higher the reward.
Let’s get to the difference,Now that we all the clear about what PoS and PoW are.
The Differences
| Proof-of-Work | Proof-of-stake |
|---|---|
| High energy consumption | Low energy consumption |
| It is very costly | It is less costly |
| It is not energy efficient | It is energy efficient |
| The rewards can be mined from a pool | The rewards cannot be mined from a pool but rather from the block |
2.) Advantages and Disadvantages
Advantages of PoW
It is very costly and makes it very hard for attackers to easily get rewards.
The PoW protocol are more of decentralized in nature.
Disadvantages of Proof-of-Work
It do not favor nodes with a poor processing system.
Low scalability
Advantages of Proof-of-Stake
It is very energy efficient
High scalability
Disadvantages of Proof-of-Stake
Because of multiple verification,Intruders can use the chance to duplicate their stake and gain undeserved rewards.
It do not flavours all those that possess smaller stake in the blockchain.
3.) PoW vs PoS: Scaling capacity
Before we start,I will be defining scaling capacity(scalability)
Scalability is the power of a program to resizes in order put up process and transaction going through it.
From my definition,I can boldly say the proof-of-stake (PoS) system is more scalable as compared to the proof-of-work system,This is because it takes lesser time for a transaction to be validated in the PoS system.Aside that,The security is better in the proof-of-stake system as intruders can only get 51% of the reward and that is of no use to them.
Example
| PoS | PoW |
|---|---|
| Binance coin | ethereum |
| Neo | Bitcoin |
| Decred | Bitcoin SV |
| Cardona | litecoin |
I would like to thanks prof @sapwood for such a wonderful lesson.I have been able to get more knowledge on this lesson.
Hello @ryzsfa, 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:
Recommendation / Feedback:
Your explanations on disadvantages and advantages of PoW and PoS is too shallow. Furthermore, you can justify your test using markdown styles to improve your presentation.
Thank you for submitting your homework. task 4. We hope to see the rest of your submissions.
Thanks for the feedback.