Crypto Academy Season 4 Beginners Course Task 6: Different Types Of Consensus Mechanisms || by @santosbass2
Steem greetings from @santosbass2, am glad to participate in this home work task given by @sapwood.
Question
(2) What is the difference between PoS & DPoS? Advantages & Disadvantages? Name a few Blockchain projects which use the DPoS consensus mechanism and indicate the scaling capacity?
To begin with, Consensus Mechanism in line with block chain is a means of which computers are being made to work in an orderly and coordinated means.
With this, users are being brought under a compromise and agreement.
PoW(Proof-Of-Work)
This is the prime mechanism method in the blockchain
and is allowed by bitcoin to meet other transactions in the blockchain.
We also have PoS(Proof-Of-stake). This mechanism is actually an option B or say a substitute to Proof-Of-work and was brought in around the year between 2010/2011. In the Proof-Of-Stake mechanism, high level consumption is being reduced, there’s also a termination of miners. Selection in the PoS is done by amount of stakes, stake age and also randomization.
However, Pos has its advantages one of which is Efficiency Of Energy which can be easily afforded by anyone and doesn’t requires electricity consumption and users must not have or purchase a computer.
There’s also Randomization which makes work to be more of value and standard since miners won’t need pools to mine in the block.
However, we have Delegated Proof-Of-Stake also known as DPOS. This is an alternative to Pow and Pos and also, it stops fraudulent activities taking place in the blockchain. This was brought forward so that computers of high electrical capacity won’t be used.
How does Delegated Proof-Of-Stake Works?
•Creation of blockchain is always in the hands of responsibilities of the witnesses.
•Witnesses and delegates are being voted for . This is done through elections
Merits
• There’s equity in the distribution of opportunities for every member
•It’s actually faster as compared to proof-of-work and Proof-of-stake respectively.
•There’s little or no payment as transaction fees.
Demerits
• Inorder to have an effective governance, all members must be active.
• The number of witnesses are limited.
• There’s a tendency for votes to be low.
Differences between DPoS and PoS
•The scalability Of Pos is lower than that of DPoS.
• With the DPoS, members or users are given equal opportunities whereas with the PoS, only those with high stake and low hash value have chance to be elected.
•For financial cases, PoS is suitable whereas DPoS is best for social cases such as steemit.
Name a few blockchain projects which use DPoS consensus mechanism and indicate their scaling capacity
We have EOS which has scalability of 10,000 Transaction Per Second. It was built for private and public uses.
We have LISK which have over 101 delegates and its scalability creates one block per second and it was found in 2016 by Max Kordek and Oliver Beddows.
We also have Nanno and it’s scalability is over 1, 000 transaction per second. It was founded in 2015 according to my research by Colin LeMaheiu.
WAX which deals with a e-commerce transactions. It also hosts e games and sports. And blocks are produced every 0.5seconds. Full meaning of WAX is Worldwide eXchange.
Thanks for reading.