Title: Proof of Work and Proof of Stake any difference? Post by: Utoy101 on July 14, 2018, 05:50:16 AM PROOF OF WORK (POW)
-requires proof that work of some kind occurred. In the case of Bitcoin miners are required to do this work before any of their blocks is accepted by others. -PoW is a protocol designed primarily to prevent and deter cyber-attacks on the network (in fact, it has an exorbitant cost to try to make attacks, much more than what someone would earn from that), and it also allows a distributed consensus of “trustless” transactions. -PoW is needed to solve exceptionally difficult math problems, a process called Mining, which is used to write a new trustless transaction group in the blockchain. -Proof Of Work is a requirement to define an expensive computer calculation, also called mining, that needs to be performed in order to create a new group of trust less transactions (the so-called block) on a distributed ledger called blockchain. -POW is the most primitive incentive system in the blockchain. Literally, the amount of reward is measured by the amount of work and contribution of the miners. In fact, it depends on the size of computing power. ADVANTAGES
DISADVANTAGES
PROOF OF STAKE (POS) -Proof-of-Stake is executed by miners who put a number of their coins on a block to check transaction blocks. -requires users that have a high stake at the currency (i.e. hold a lot of coins) to determine the next block. This has a high risk of some party achieving monopoly of the currency but there are several methods to prevent that (by allocating random stakeholders to agree on a new block, and others). - is a different way to validate transactions based and achieve the distributed consensus. It is still an algorithm, and the purpose is the same of the proof of work, but the process to reach the goal is quite different. Proof of stake first idea was suggested on the bitcointalk forum back in 2011, but the first digital currency to use this method was Peercoin in 2012, together with ShadowCash, Nxt, BlackCoin, NuShares/NuBits, Qora and Nav Coin. Unlike the proof-of-Work, where the algorithm rewards miners who solve mathematical problems with the goal of validating transactions and creating new blocks, with the proof of stake, the creator of a new block is chosen in a deterministic way, depending on its wealth, also defined as stake. No block reward.Also, all the digital currencies are previously created in the beginning, and their number never changes.This means that in the PoS system there is no block reward, so, the miners take the transaction fees.This is why, in fact, in this PoS system miners are called forgers, instead. -POS does not require judging the power and contribution, but decided by equity. The "equity" here can also be understood as tokens, that is, miners with more tokens will get more rewards. -is a method of securing a cryptocurrency network through requesting users to show ownership of a certain amount of currency. ADVANTAGES
DISADVANTAGES
CREDITS: AdoboCandies https://bitcointalk.org/index.php?topic=4613620.0 (https://bitcointalk.org/index.php?topic=4613620.0) SOURCES: https://en.bitcoinwiki.org/wiki/Proof-of-work https://bitcoin.stackexchange.com/questions/43467/whats-the-difference-between-pow-and-pos https://medium.com/novamining/main-differences-between-pow-and-pos-cryptocurrency-mining-c4cc279d9739 http://www.cryptocurrencycare.com/difference-between-pow-pos/ https://www.quora.com/Can-you-explain-easily-the-difference-between-PoS-and-PoW-in-blockchain-in-one-sentence https://coincentral.com/making-sense-of-proof-of-work-vs-proof-of-stake/ |