 |
July 11, 2018, 06:18:41 PM |
|
POW：(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. mainly is based on computation power, it means you are as powerful as the number(and power) of your CPUs.
POS: (Proof of stake) so another algorithm was developed that works completely different and makes you powerful as your stakes, in another word the amount of the coins that you earn is related to amount of stakes that you hold, for example, if you have 10% of a coin in your account, you would earn 10% of new coins that are created in future(the concept is simplified, there are more details in technical terms) because the probability of you signing next block would be related to your amount of stake. in this case you don't need to solve very hard mathematical challenges anymore which prevents wasting many resources like electricity, and also if someone wants to own more than 51% of the stakes to do the attack, he/she has to buy 51% of the stakes which is practically impossible because when he/she starts buying all the coins, the price would go to the moon and he/she won't be able to afford all that money.
|
