Proof of Work vs Proof of Stake

[krypto_k]

A central idea of blockchain technology is the distributed ledger. It is called a distributed ledger because instead of being stored in a central location, it is stored across a network of computers all around the world. For a distributed ledger to work, the entire network collectively has to agree with the contents of the ledger; this is the job of the consensus mechanism. The most popular blockchain consensus mechanisms are the Proof of Work (PoW) and Proof of Stake (PoS) systems., A number of other systems exist, such as Delegated Proof of Stake (DPoS) and Federated Byzantine Agreement (FBA) however this article will be focussed on presenting and then comparing PoW vs PoS.

more: https://medium.com/@poolofstake/how-to-crypto-part-iii-proof-of-work-and-proof-of-stake-664dd2368ad0

[proo7]

A central idea of blockchain technology is the distributed ledger. It is called a distributed ledger because instead of being stored in a central location, it is stored across a network of computers all around the world. For a distributed ledger to work, the entire network collectively has to agree with the contents of the ledger; this is the job of the consensus mechanism. The most popular blockchain consensus mechanisms are the Proof of Work (PoW) and Proof of Stake (PoS) systems., A number of other systems exist, such as Delegated Proof of Stake (DPoS) and Federated Byzantine Agreement (FBA) however this article will be focussed on presenting and then comparing PoW vs PoS.

more: https://medium.com/@poolofstake/how-to-crypto-part-iii-proof-of-work-and-proof-of-stake-664dd2368ad0

Nice article.
Thanks

Problem for PoS i distribution....so it is not fair from start

[krypto_k]

A central idea of blockchain technology is the distributed ledger. It is called a distributed ledger because instead of being stored in a central location, it is stored across a network of computers all around the world. For a distributed ledger to work, the entire network collectively has to agree with the contents of the ledger; this is the job of the consensus mechanism. The most popular blockchain consensus mechanisms are the Proof of Work (PoW) and Proof of Stake (PoS) systems., A number of other systems exist, such as Delegated Proof of Stake (DPoS) and Federated Byzantine Agreement (FBA) however this article will be focussed on presenting and then comparing PoW vs PoS.

more: https://medium.com/@poolofstake/how-to-crypto-part-iii-proof-of-work-and-proof-of-stake-664dd2368ad0

Nice article.
Thanks

Problem for PoS i distribution....so it is not fair from start

What do you mean exactly?

[MATHReX]

A central idea of blockchain technology is the distributed ledger. It is called a distributed ledger because instead of being stored in a central location, it is stored across a network of computers all around the world. For a distributed ledger to work, the entire network collectively has to agree with the contents of the ledger; this is the job of the consensus mechanism. The most popular blockchain consensus mechanisms are the Proof of Work (PoW) and Proof of Stake (PoS) systems., A number of other systems exist, such as Delegated Proof of Stake (DPoS) and Federated Byzantine Agreement (FBA) however this article will be focussed on presenting and then comparing PoW vs PoS.

more: https://medium.com/@poolofstake/how-to-crypto-part-iii-proof-of-work-and-proof-of-stake-664dd2368ad0

Nice article.
Thanks

Problem for PoS i distribution....so it is not fair from start

What do you mean exactly?

As in PoW at the start, miners can start mining a new coin and accumulate a good amount before the difficulty catches up which provides equal opportunity to everyone as the majority of people owe a fully fledged PC whereas, with PoS, one has to buy the coins to get a minimum amount to actually start staking.
I'm always in hope that the new coins start as PoW and then transit slowly to PoS by time.

[butka]

I tried to read the linked article, but I stopped here:

How mining works:

    A number of transactions are bundled into a memory pool (mempool).
    Miners verify each transaction in the mempool is correct by solving a mathematical puzzle.
    The first miner to solve the puzzle gets rewarded with newly produced bitcoin (the block reward) and network transaction fees.
    The verified mempool, now called a block, is attached to the blockchain.

There are some serious inaccuracies in the above sentences, for example:

Miners verify each transaction, but to verify each transaction they don't have to solve a mathematical puzzle. In fact, every full node, not just a mining node, can verify a transaction.
They need to solve a mathematical puzzle to earn the right to write the next block and collect the reward.
The verified mempool is not called a block.
The mempool contains transactions not yet included in a block, but broadcast to the network.

The author should correct the above statements before discussing PoW and comparing it to PoS.

[markiz73]

People have long argued about a POW and POS. To find the answer to this question, let's look at the top 30 coins on coinmarketcap.com.
Mining bitcoin spends a lot of electricity and requires the most special equipment. Thanks to this, we can calculate the cost of the coin.

POS mining is similar to bank deposit. The investor receives new coins, because he keeps a certain amount of coins on the account.

Let's look at Vitalik with his ETH and how his algorithm will end.

[strtype]

Proof of work spends much electricity but is securer of the two.
Proof of stake however conserves electricity, yet is *deemed* insecure. Although I have no way to check that and do not have the knowledge for it.

[andrew4]

The whole crypto space is slowly but steadily moving towards POS. It's more enviroment friendly, plus you get rid of the ASIC mining companies like bitmain.

[Tidsdilatation]

The fact that you base your arguments that electicity is killing the planet makes you all wrong. Look at charts, all electricity in the near future will be made by enviorment friendly means, such as solar power, wind and water.
The electricity argument will not work for long.

[lostprophet007]

The fact that you base your arguments that electicity is killing the planet makes you all wrong. Look at charts, all electricity in the near future will be made by enviorment friendly means, such as solar power, wind and water.
The electricity argument will not work for long.

but the problems remains.... even if energy comes from green source, in POW you waste it.

[paklungipin]

The POW consensus system has long faced problems in the end.
One of the main problems is the system commissions and scalability.
And if you look back, at the time of consensus POW is used at the time
that's the volatility of digital assets is high. It may also be related
POW consensus has potential exponential rewards.
This would be fine if you consider cryptocurrency not as a means of payment
but as a tool for storing values. With the volatility of digital assets
high, investors who are accustomed to saving money in gold will surely refuse.

Changing the POW consensus to POS will completely alter the idea of ​​mining.
If Ether gradually changed his consensus, it seemed to be at the right moment.
Because in Ether also must pay attention to the idea of ​​business solutions
and smart contract ideas that must be developed.

There is nothing wrong with POW, but it can be compared with Pentium III,
while POS is the newer AsRock with Intel i7 processor.

[lunobird]

I have 20k in mining rigs that earn zero after electric cost of 26 cents. A pivx masternodes cost 20k now and can bring in around $250 a month with no electric cost. It's better to sell your mining rigs and get a masternode coin if your electricity is high.

[RentGPU]

Nothing is wasted in POW , we are wasting more energy running our cars with 70% effeciency motors , no energy is wasted but converted to another form converted to digital money to help alot of ppl mining for a living, not some rich as* want to get richer on the cost of poor miners.

[adaseb]

Nothing is wasted in POW , we are wasting more energy running our cars with 70% effeciency motors , no energy is wasted but converted to another form converted to digital money to help alot of ppl mining for a living, not some rich as* want to get richer on the cost of poor miners.

This is true. This is basically saying that NASCAR should be banned because all it does is waste oil to get cars to drive around in a circle all day.

The premise is correct. It needs to take energy to mine Bitcoins so it can hold its value. Since the energy is never free that is a good thing. It will ensure miner rewards which will be plenty which will keep the network secure.

I wouldn't trust POS either due to the centralization problem. Look at what is going on with EOS is a good example.

[lunobird]

Nothing is wasted in POW , we are wasting more energy running our cars with 70% effeciency motors , no energy is wasted but converted to another form converted to digital money to help alot of ppl mining for a living, not some rich as* want to get richer on the cost of poor miners.

This is true. This is basically saying that NASCAR should be banned because all it does is waste oil to get cars to drive around in a circle all day.

The premise is correct. It needs to take energy to mine Bitcoins so it can hold its value. Since the energy is never free that is a good thing. It will ensure miner rewards which will be plenty which will keep the network secure.

I wouldn't trust POS either due to the centralization problem. Look at what is going on with EOS is a good example.

How so? Btc is centralized and  owned by a single company called Bitmain.  Eos is ruled by 21 node block producers that can be voted on and changed out. Not even bitmain can get their scammy hands on eos

Pow is absolutely wasteful energy, and those that are for it got a vested interest with cheap Power supply source. Thats the definition of centralized. 

[Suslived]

Nothing is wasted in POW , we are wasting more energy running our cars with 70% effeciency motors , no energy is wasted but converted to another form converted to digital money to help alot of ppl mining for a living, not some rich as* want to get richer on the cost of poor miners.

This is true. This is basically saying that NASCAR should be banned because all it does is waste oil to get cars to drive around in a circle all day.

The premise is correct. It needs to take energy to mine Bitcoins so it can hold its value. Since the energy is never free that is a good thing. It will ensure miner rewards which will be plenty which will keep the network secure.

I wouldn't trust POS either due to the centralization problem. Look at what is going on with EOS is a good example.

How so? Btc is centralized and  owned by a single company called Bitmain.  Eos is ruled by 21 node block producers that can be voted on and changed out. Not even bitmain can get their scammy hands on eos

Pow is absolutely wasteful energy, and those that are for it got a vested interest with cheap Power supply source. Thats the definition of centralized.  

Stopped reading when you contradicted yourself by saying that EOS is decentralized.

By the definition you just described, EOS is centralized to the 21 node block producers. On the other hand, bitcoin is decentralized across the millions of miners who are mining on the network. Yes bitmain is selling hardware, but they control much less than your imagination dictates.

A bit off topic, but EOS seems to be a failed project, by the way. $4 billion USD in funding for what we are seeing, really? Can you shill to me why EOS needs that much money to build a blockchain?

[lunobird]

Nothing is wasted in POW , we are wasting more energy running our cars with 70% effeciency motors , no energy is wasted but converted to another form converted to digital money to help alot of ppl mining for a living, not some rich as* want to get richer on the cost of poor miners.

This is true. This is basically saying that NASCAR should be banned because all it does is waste oil to get cars to drive around in a circle all day.

The premise is correct. It needs to take energy to mine Bitcoins so it can hold its value. Since the energy is never free that is a good thing. It will ensure miner rewards which will be plenty which will keep the network secure.

I wouldn't trust POS either due to the centralization problem. Look at what is going on with EOS is a good example.

How so? Btc is centralized and  owned by a single company called Bitmain.  Eos is ruled by 21 node block producers that can be voted on and changed out. Not even bitmain can get their scammy hands on eos

Pow is absolutely wasteful energy, and those that are for it got a vested interest with cheap Power supply source. Thats the definition of centralized.  

Stopped reading when you contradicted yourself by saying that EOS is decentralized.

By the definition you just described, EOS is centralized to the 21 node block producers. On the other hand, bitcoin is decentralized across the millions of miners who are mining on the network. Yes bitmain is selling hardware, but they control much less than your imagination dictates.

A bit off topic, but EOS seems to be a failed project, by the way. $4 billion USD in funding for what we are seeing, really? Can you shill to me why EOS needs that much money to build a blockchain?

When you mine on a pool you give up your power to that pool. Mining pools are very centralized. So saying millions of individual miners is decentralized is pure bullshit

Eos is a top 5 coin by marketcap. That's no failure. I don't need to shill Eos. The product speaks for itself.