Crypto Academy Season 3 Beginners' course - Homework post for Task 4: Different types of Consensus Mechanisms by @shahidchoudary
Greetings to you all out there 🤗 i am happy that this platform has became an important learning place because of @steemitcryptoacademy . I am here to submit my homework given by sir @sapwood . So let's begin our task :
(1) What is the difference between PoW & PoS? Advantages & Disadvantages? Which one is better in scaling Capacity? Examples?
I am quite confident about answering this question.si let's divide it part by part.
What is the difference between PoW & PoS ?
Ans :
PoW | PoS |
---|
(▪️) The bigger stakeholder , the more chances he have to be a block creator.
(▪️) It consumes very less power.
(▪️) The creator doesn't get any reward so he charges fee for it.
(▪️) The more powerful the system is the more likely the miner is to be selected as block creater.
(▪️) It consumes a lot of power.
(▪️) The miner gets rewarded when block is added in blockchain.
Advantages & Disadvantages ?
PoW :
Advantages | Disadvantages |
---|
(▪️) Its overall performance is low because transactions need time and hence it is not very suitable for commercial use.
(▪️) High end security is prominent because as we this system is based on hashes so getting the correct hash is almost impossible and it would cost too much.
(▪️) It is goal oriented so the miner has a proper goal and he work for it connecting digital and physical world.
( ▪️ ) It is not very complex . So its simple nature of work also get it an edge.
PoS :
Advantages | Disadvantages |
---|
(▪️) Even if you have a very bigger investment , you won't be promoted accordingly because suddenly another richer would come and your deserved opportunity could be lost.
(▪️) You can lose your everything because it is less secured and frauds are likely to happen.
(▪️) Sometimes even the selected ones aren't present so it slows down the process.
(▪️) You don't need complex softwares and high end devices and this simplicity gives it an edge.
( ▪️) As it needs more and more token so it puts an selling / buying trend in market which is very essential for cryptocurrencies.
Scaling Capacity :
Scaling capacity is actually the ability of any cryptocurrency to proceed a specific number of transactions at a time . It is different for different currencies depending upon their system and nature of proof and some other factors.
Which one is better in scaling Capacity?
According to my study , PoS is better is scaling Capacity . Because even there are more transactions are queed at PoW , due to its slower nature it would not stand in comparison to PoW . PoW being so energy efficient makes the whole process very easy and fast. Even though it is less secured but when it comes to numerical figure it is prominent one .
Even many transactions are supposed to happen due to many stakeholders it get all done in no time and stands out.
Examples :
Many famous cryptocurrencies like
- Bitcoin
- Ethereum
- Lite coin
comes in catagory of PoW but even after their dominance their scaling Capacity is less then many other cryptocurrencies.
Cryptocurrencies like
- BnB
- Akt
- Dash
- Neo
Comes in catagory of PoS and they have a bigger scaling Capacity.
Hello @shahidchoudary , 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:
Observations:
This is not true. In PoS, the validators get reward from transaction fees on the network.
Recommendation / Feedback:
Thank you for submitting your homework task 4. We hope to see the rest of your submissions.
I tried my best.. i am so embarrassed there was so many mistakes 😞😞... I would try to improve next time....thanks for grading