Proof of Stake Vs. Proof of Work
The two common types of consensus mechanisms are Stake Proof (PoS) and Work Proof (PoW), which is a vital aspect of blockchain technology. Mechanisms of consensus are essential to the functioning of distributed ledgers-the fundamental aspect of blockchain technology, which enables it to function without a central authority.
The primary role of the consensus process is to verify the information added to the ledger, ensuring consistency and validity of that information. By doing so, it is verified that the next block added to the network is the most recent transaction, preventing double-spending or any other form of data modification on the device. Essentially, the consensus mechanism ensures that in addition to providing safe and legitimate blockchain-based transactions the entire blockchain network agrees collectively with the ledger’s material.
Although several consensus mechanisms are currently available, PoW and PoS are by far the most famous consensus mechanisms in blockchain. As we will explore in this section, they are quite different based on features, as well as the pros and cons.
Proof of Work Explained
Proof of Work(PoW) is based on cryptography-an advanced form of mathematics that once resolved points at an actual transaction. Miners basically solve complex math problems and get credit for adding a checked block to the blockchain. Finding a solution to math or asymmetric puzzles is not an easy task, and requires the use of significant computing power to solve them. There is no expertise needed to solve the complicated problems; brute force is required instead. Once a computer guesses the right solution for the puzzle, it depends on other network computers to validate it. The program is quick to check the issues.
Contrary to the views of most Bitcoin enthusiasts, PoW existed way before Bitcoin or any other asset crypto. Cynthia Dwork and Moni Naor were credited with PoW’s idea in 1993, with Markus Jakobsson coining the term “Proof of Work” in 1999. Nevertheless, the founder of Bitcoin, Satoshi Nakamoto, was basically the first to implement it.
Proof of Stake(PoS)
PoS consensus is quite different from PoW in the sense that there is no mining because the computing power is replaced by currency power. Miners aren’t solving asymmetric puzzles with PoS. The miner then puts up a stake or holds multiple coins to test a series of transactions. The miner referred to as text block forger is chosen using a deterministic approach based on their stake in the coin. The asymmetric puzzles in PoS are much easier, and forgers only need to show that they own a specific percentage of all available coins in a given currency. For example, if somebody owned 2 per cent of all Litecoin (LTC) transactions, they can mine 20 per cent of all.
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