Different types of Consensus Mechanisms - Steemit Crypto Academy Season 5 - Homework Post for Task 6
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What is the difference between PoW and PoS ? Advantages and disadvantages? Which one is better stability capacity? Examples?
Q1) What is the difference between PoS & PoW?
What is the PoW?
PoW (proof of work) is the original consensus mechanisms in a block chain network. The algorithm used to conform the transaction and create a new block chain. The main work of proof of work calculate the mathematical puzzle which can use easily solution. The miners task are validate the transaction record them public ledger.
what is the PoS?
PoS (proof of stake) is the type of consensus mechanism used to validate cryptocurrency transactions.
Owners of the cryptocurrency can stake thier coins which gives them right to check new blocks of transactions and add them to block chain. PoS is a determined . Here the creator based on the defined stake.
| No. | PoW(proof of work) | PoS(proof of stake) |
|---|---|---|
| 1 | The probability of mining a block is determined by how much computing work is done by miner. | The probability of validity a new block is determined by how large of a stake personholds. |
| 2 | A benefit is give to first mineworker to solve mathematical puzzle of each block. | The validator do not receive a block benefit instead they collect network fee as their benefit |
| 3 | Initial investment to buy hardware. | Initial investment to buy stake and build reputation. |
| 4 | Algorithm which uses most well known proof-of-work function is called SHA256. | Consensus are EOS, Tezos,Cardano. |
Advantages of PoW( proof of work)
▪︎ The first advantage of PoW is that it provides a solid mechanism for a execute consensus and preventing abuses and misuses.
▪︎PoW fundamentally is a system for validate transactions without the need for a third party, as well as for averting individuals organisations from tampering with the database.
▪︎proof of work such a security , trust, legitimacy, and decentralization.
▪︎PoS is blockchain is a distributor that represents information ledger balance of transactions.
▪︎ A peer to peer network of participants maintain database by achieving consensus things.
Disadvantages of PoW
▪︎The large disadvantage of PoW middle on the the compute capabilities need to solve mathematical problems in authenticity blockchain transactions.
▪︎The same energy -intensiveness is also the reson behind the more specific disadvantage of proof of work.
▪︎A biggest disadvantage one of drawbacks of blockchain , major criticism of cryptocurrencies and PoW based have negative environmental impact.
▪︎PoW machines requires effective heat management , prevent overheating, damages to hardware components.
▪︎The drawback of proof of work represents a major reason why other blockchain platforms have utilize alternative consensus.
Advantages of PoS(proof of stake)
▪︎one of the primary Advantage of pos as consensus mechanisms , especially when compared to Pow mechanisms is that does not need utilizing powerful computers and consuming big amount of energy.
▪︎Another advantage of PoS is that it makes the blockchain secure by incentivizing proper validation . Validators earn a portion of the transaction fee and they will lose the stake .
▪︎Better energy efficiency you don't need to use lots of energy mining block .
▪︎ Lower barriers to entry energy reduces hardware requirements you don't need to hardware elite to stand a chance of creating new blocks.
▪︎Stronger immunity to centralization proof of stake should lead to more nodes in the network.
Disadvantages of Pos (proof of stake)
▪︎Proof of stake is much more complicated. It is not secure as proof of work. It need all kind of complex system and rules in order to function.
▪︎ The biggest disadvantage of proof of stake is its susceptibility to the so called 51% attack
▪︎The proof of stake algorithm select the creator of next block depending on various mechanisms.
▪︎The logic behind the proof of stake discourses participants from exploiting the pos based on blockchain platforms.
▪︎The technology and technical barriers that come from owning cryptocurrency.
Which one is better stability capacity ?
In my opinion proof of stake is better mechanism than proof of work.Pos is the cheper than PoW it reduces the risk and another of choosing it is consumes less energy then proof of work and its does not need costly hardware.
Examples
TEZOS
NAV
DASH
Conclusion
Today I learnt about PoW and PoS consensus mechanisms . It is very knowledgeable About consensus mechanisms and i am glad to give answering of this question.
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