Crypto Academy Season 5 Beginners' Course - Task 6: Different Types of Consensus Mechanism
Heya Steemians, I hope you are doing great? This is my submission to Professor @sapwood and @dilchamo for Beginner's Task 6: Different Types of Consensus Mechanism
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DIFFERENCE BETWEEN PoW and PoS?
Proof of Work also known as PoW and PoS that stands for Proof of Stake are both consensus mechanism which is used to create validity and authenticity here on the blockchain. These Protocols were introduced to make digital transactions secure and legit and having to accept and know that no 3rd parties are included.
| Proof-of-Work | Proof-of-Stake |
|---|---|
| To get a reward you have to solve complex mathematical problems | Rewards are cotton just by staking asset |
| To get a reward your need to do lots of brian storming | You don't need any brainstorming to earn your reward |
| You will need expensive equipment in conjunction with your brainstorming to earn a reward | You don't need any expensive equipment or any form of brainstorming to earn a reward |
ADVANTAGES AND DISADVANTAGES OF PoW.
| Advantages | Disadvantages |
|---|---|
| PoW is fast because of the competition of who earns the reward | Cost of getting mining tools |
| Hackers find it difficult to penetrate because of the decentralized nature of the system | It's time demanding and it also consumes many resources |
| Transactions here are very accurate since it has to be proven before it can be added as a block | It takes a lot of time sometimes to achieve result since it has to be constantly checked and verified |
ADVANTAGES AND DISADVANTAGES OF PoS.
| Advantages | Disadvantages |
|---|---|
| Reward earning here does not require any form of calculation | Rank of validators here is increased just by staking their asset |
| No need for any expansive tools before you can mine and earn a reward | Staking here requires a certain amount of money to earn a better reward |
| PoS is very scalable hence can attend to as many transactions as possible within a little time frame | Higher staking generates higher reward whereas lower staking generates lower rewards |
WHICH ONE IS BETTER IN SCALING CAPACITY? EXAMPLES
PoS is better in scaling Capacity due to the fact that it allows the processing of hundreds of thousands of request per second with milliseconds increases in latency. So basically I see Proof-of-Stake be more scalable than proof-of-work.
Example of Coins that use PoW
| Examples of Proof-of-Work | Examples of Proof-of-Stake |
|---|---|
| Ethereum | NXT |
| Litecoin | Binance coin |
| Dogecoin | Polkadot |
| Bitcoin | EOSIO |
Thank you for reading. Hope you enjoyed it