Bitcoin Forum
October 17, 2017, 05:35:59 PM *
News: Latest stable version of Bitcoin Core: 0.15.0.1  [Torrent]. (New!)
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: Whats the different POW and POS algorithm ?  (Read 263 times)
kawasaki5050
Full Member
***
Offline Offline

Activity: 129


View Profile
May 09, 2017, 08:09:40 AM
 #1

Im new to enter the cryptocurrency world so I would like to ask how POW and POS algorithm work. Why is POS algorithm outstanding than POW?

1508261759
Hero Member
*
Offline Offline

Posts: 1508261759

View Profile Personal Message (Offline)

Ignore
1508261759
Reply with quote  #2

1508261759
Report to moderator
1508261759
Hero Member
*
Offline Offline

Posts: 1508261759

View Profile Personal Message (Offline)

Ignore
1508261759
Reply with quote  #2

1508261759
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1508261759
Hero Member
*
Offline Offline

Posts: 1508261759

View Profile Personal Message (Offline)

Ignore
1508261759
Reply with quote  #2

1508261759
Report to moderator
1508261759
Hero Member
*
Offline Offline

Posts: 1508261759

View Profile Personal Message (Offline)

Ignore
1508261759
Reply with quote  #2

1508261759
Report to moderator
1508261759
Hero Member
*
Offline Offline

Posts: 1508261759

View Profile Personal Message (Offline)

Ignore
1508261759
Reply with quote  #2

1508261759
Report to moderator
Iranus
Sr. Member
****
Offline Offline

Activity: 462


View Profile
May 09, 2017, 08:36:45 AM
 #2

The wiki article is a pretty good explanation.  Basically, in Proof of Work a person/pool's chance of mining a block is determined by how much computing power they dedicate to the network.  In Proof of Stake however, a person's chance of let's say "creating" a block is determined by their stake in the coin (how much they hold).  This doesn't necessarily prevent centralisation but it does encourage re-investment in the cryptocurrency so that people don't cash out to fiat straight away.  There are also hybrid systems like what Ethereum is starting to move towards for now.

Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!