Crypto Academy Season 3 / Beginners course - Task 4 / For Professor [@sapwood] Consensus Mechanisms / By @warrior02
(1) What is the difference between PoW & PoS? Advantages & Disadvantages? Which one is better in scaling Capacity? Examples?
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| PROOF OF WORK | PROOF OF STAKE |
|---|---|
| -In Proof of work, block mining depends on achievable number of computing effort in solving complex puzzle mathematically | In proof of stake, block mining is based on the number of coins the miner have. |
| -Proof of work, miners get block rewards in solving cryptographic puzzle | In proof of stake the validators don't get block rewards, they get the transaction fees as their rewards. |
| -Proof of work is more expensive and high in energy consumption | Proof of stake is less energy consuming and not costly. |
| -Proof of work carries out limited transactions at a time | proof of stake carries out more transactions at a time. |
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- Miners get rewarded with transaction fees and block rewards
- It is hard and expensive to attack
- proof of work is Decentralized
- Anybody can engage in mining process.
- It requires much energy consumption, which leads to high cost and also causes environmental impacts
- Verification of transactions takes too long.
- proof of stake provides finer rewards for nodes staking their crypto-currency
- proof of stake do not take much computational power and they are more energy-saving
- Verification of transactions does not take much time.
- It processes much transactions at a time.
The validators only get network fees
Proof of stake models are not that secured
It needs much investment on stake
Which one is better in scaling Capacity? Examples?
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Proof of stake when it comes to scalability is better in the sense that it solves the problem with proof of work. Like the high consumption of energy and the issue of transaction speed and others. Validation of transaction in Proof of stake doesn't take much time than that of proof of work that takes much time for transaction to get verified. An example of is the Etheruem blockchain when it changed to proof of stake making the validation of transaction fast.
Other blockchains using proof of work stake are, DASH, NEO, TEZOS etc.
Cc:
Professor @sapwood
Hi @warrior02, Thank you for taking interest in the 4th Task of the Beginners Fixed Class. Your grades are as follows:
My Review and Suggestions:
You have completed the task.
Proof of Stake is one type of consensus that requires a large fee if you want to participate because only people who have large capital will be appointed as validators.
You didn't mention examples of cryptocurrencies that use PoW.
Some of your explanations are still too shallow, please deepen them so that more information can be included in your assignment.
Thank you!