newIndia (OP)
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June 08, 2014, 03:29:31 PM |
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I just read somewhere that Bitcoin is based on PoW over PoS. What does it mean ? What is the implementation or usage of Proof of Work and Proof of Stake in the Bitcoin world ?
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"In a nutshell, the network works like a distributed
timestamp server, stamping the first transaction to spend a coin. It
takes advantage of the nature of information being easy to spread but
hard to stifle." -- Satoshi
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byt411
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June 08, 2014, 03:34:26 PM |
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PoW = Proof of Work
PoS = Proof of Stake.
In simple terms, PoW means mining with hardware, and PoS means that by having your wallet open with coins in it, you have a chance to process a block and earn the block reward.
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newIndia (OP)
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Activity: 2198
Merit: 1049
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June 08, 2014, 04:13:14 PM |
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PoW = Proof of Work
PoS = Proof of Stake.
In simple terms, PoW means mining with hardware, and PoS means that by having your wallet open with coins in it, you have a chance to process a block and earn the block reward.
Mining with hardware is fine. But how do I process a block with my wallet ? Did not get this part !!! |
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byt411
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June 08, 2014, 04:13:52 PM |
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PoW = Proof of Work
PoS = Proof of Stake.
In simple terms, PoW means mining with hardware, and PoS means that by having your wallet open with coins in it, you have a chance to process a block and earn the block reward.
Mining with hardware is fine. But how do I process a block with my wallet ? Did not get this part !!! Basically, you have coins in your wallet and you leave it open. I don't know the technical details. |
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robmob
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June 08, 2014, 04:15:39 PM |
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PoW = Proof of Work
PoS = Proof of Stake.
In simple terms, PoW means mining with hardware, and PoS means that by having your wallet open with coins in it, you have a chance to process a block and earn the block reward.
Mining with hardware is fine. But how do I process a block with my wallet ? Did not get this part !!! Basically, you have coins in your wallet and you leave it open. I don't know the technical details. I believe your wallet will still stake even if closed as I have opened my wallets several times and got coins from POS I am not 100% sure though |
Donate BTC:15YMgV1nb97bpRqBT7CEf6ryo37gqeeRpL |
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byt411
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June 08, 2014, 04:17:44 PM |
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PoW = Proof of Work
PoS = Proof of Stake.
In simple terms, PoW means mining with hardware, and PoS means that by having your wallet open with coins in it, you have a chance to process a block and earn the block reward.
Mining with hardware is fine. But how do I process a block with my wallet ? Did not get this part !!! Basically, you have coins in your wallet and you leave it open. I don't know the technical details. I believe your wallet will still stake even if closed as I have opened my wallets several times and got coins from POS I am not 100% sure though As far as I know, you won't stake if its closed. There might be a few altcoins that are different, I don't know. |
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KimNam
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June 08, 2014, 04:28:14 PM |
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I believe your wallet will still stake even if closed as I have opened my wallets several times and got coins from POS I am not 100% sure though
As far as I know, you won't stake if its closed. There might be a few altcoins that are different, I don't know. most of POS altcoin that i used before always like that only stakes if i open its wallet i don't know how about PPC, original POS coin |
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newIndia (OP)
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Activity: 2198
Merit: 1049
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June 08, 2014, 04:37:09 PM |
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I believe your wallet will still stake even if closed as I have opened my wallets several times and got coins from POS I am not 100% sure though
As far as I know, you won't stake if its closed. There might be a few altcoins that are different, I don't know. most of POS altcoin that i used before always like that only stakes if i open its wallet i don't know how about PPC, original POS coin What do u mean by open & close wallet ? The wallet address is open and the private key is confidential... this is what I understand about the states of a wallet. Now, how do I open or close it ? |
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byt411
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June 08, 2014, 05:01:53 PM |
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I believe your wallet will still stake even if closed as I have opened my wallets several times and got coins from POS I am not 100% sure though
As far as I know, you won't stake if its closed. There might be a few altcoins that are different, I don't know. most of POS altcoin that i used before always like that only stakes if i open its wallet i don't know how about PPC, original POS coin What do u mean by open & close wallet ? The wallet address is open and the private key is confidential... this is what I understand about the states of a wallet. Now, how do I open or close it ? Opening wallet = Open the wallet software. You double click on the icon, it synchronizes, and it starts staking. |
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newIndia (OP)
Legendary
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Activity: 2198
Merit: 1049
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June 08, 2014, 05:10:13 PM |
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I believe your wallet will still stake even if closed as I have opened my wallets several times and got coins from POS I am not 100% sure though
As far as I know, you won't stake if its closed. There might be a few altcoins that are different, I don't know. most of POS altcoin that i used before always like that only stakes if i open its wallet i don't know how about PPC, original POS coin What do u mean by open & close wallet ? The wallet address is open and the private key is confidential... this is what I understand about the states of a wallet. Now, how do I open or close it ? Opening wallet = Open the wallet software. You double click on the icon, it synchronizes, and it starts staking. Ok... so in simple term, while I'm supporting the network by running a client, it is called PoS.... Right ? |
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JasonSW
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June 08, 2014, 05:42:10 PM |
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I just read somewhere that Bitcoin is based on PoW over PoS. What does it mean ? What is the implementation or usage of Proof of Work and Proof of Stake in the Bitcoin world ?
Bitcoin uses PoW. |
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byt411
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June 08, 2014, 05:50:31 PM |
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I believe your wallet will still stake even if closed as I have opened my wallets several times and got coins from POS I am not 100% sure though
As far as I know, you won't stake if its closed. There might be a few altcoins that are different, I don't know. most of POS altcoin that i used before always like that only stakes if i open its wallet i don't know how about PPC, original POS coin What do u mean by open & close wallet ? The wallet address is open and the private key is confidential... this is what I understand about the states of a wallet. Now, how do I open or close it ? Opening wallet = Open the wallet software. You double click on the icon, it synchronizes, and it starts staking. Ok... so in simple term, while I'm supporting the network by running a client, it is called PoS.... Right ? That's a way to put it. Some say that it's good because there is a lot less electricity consumption, but it could be manipulated to be centralized. |
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newIndia (OP)
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Activity: 2198
Merit: 1049
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June 08, 2014, 06:15:58 PM |
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I believe your wallet will still stake even if closed as I have opened my wallets several times and got coins from POS I am not 100% sure though
As far as I know, you won't stake if its closed. There might be a few altcoins that are different, I don't know. most of POS altcoin that i used before always like that only stakes if i open its wallet i don't know how about PPC, original POS coin What do u mean by open & close wallet ? The wallet address is open and the private key is confidential... this is what I understand about the states of a wallet. Now, how do I open or close it ? Opening wallet = Open the wallet software. You double click on the icon, it synchronizes, and it starts staking. Ok... so in simple term, while I'm supporting the network by running a client, it is called PoS.... Right ? That's a way to put it. Some say that it's good because there is a lot less electricity consumption, but it could be manipulated to be centralized. But, without the electricity consumption, i.e. without mining operation, how does the blockchain or public ledger formation takes place in PoS coins ? |
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jambola2
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Activity: 1120
Merit: 1038
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June 08, 2014, 06:29:13 PM |
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I believe your wallet will still stake even if closed as I have opened my wallets several times and got coins from POS I am not 100% sure though
As far as I know, you won't stake if its closed. There might be a few altcoins that are different, I don't know. most of POS altcoin that i used before always like that only stakes if i open its wallet i don't know how about PPC, original POS coin What do u mean by open & close wallet ? The wallet address is open and the private key is confidential... this is what I understand about the states of a wallet. Now, how do I open or close it ? Opening wallet = Open the wallet software. You double click on the icon, it synchronizes, and it starts staking. Ok... so in simple term, while I'm supporting the network by running a client, it is called PoS.... Right ? That's a way to put it. Some say that it's good because there is a lot less electricity consumption, but it could be manipulated to be centralized. But, without the electricity consumption, i.e. without mining operation, how does the blockchain or public ledger formation takes place in PoS coins ? PoS is not that effective at stabilizing , because a single person owning majority coins can control the currency. Peercoin uses a hybrid of PoW and PoS. This prevents a 51% attack , is more energy efficient and yet does not have the problem of centralization due to PoS. |
No longer active on bitcointalk, however, you can still reach me via PMs if needed.
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odolvlobo
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Activity: 4298
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June 08, 2014, 06:34:52 PM |
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In short, Proof-of-Work and Proof-of-Stake are criteria that determine your ability to add a block to the block chain. Their purpose is to ensure that the cost of adding an invalid transaction to the block chain is more than the benefit of the invalid transaction.
In PoW, the amount of work done by your mining hardware determines your chances of adding a block. In order to double spend you would need to expend a lot of computing power.
In PoS, the amount of coins you own determines your chances of adding a block. Double-spending damages the integrity of the currency, and doing it would threaten the value of the coins you own.
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newIndia (OP)
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Activity: 2198
Merit: 1049
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June 08, 2014, 07:55:56 PM |
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In short, Proof-of-Work and Proof-of-Stake are criteria that determine your ability to add a block to the block chain. Their purpose is to ensure that the cost of adding an invalid transaction to the block chain is more than the benefit of the invalid transaction.
In PoW, the amount of work done by your mining hardware determines your chances of adding a block. In order to double spend you would need to expend a lot of computing power.
In PoS, the amount of coins you own determines your chances of adding a block. Double-spending damages the integrity of the currency, and doing it would threaten the value of the coins you own.
Thank you... That is an awesome explanation !!!  So, can I assume that PoS coins are ASIC resistant, i.e. the arms race of mining hardwares does not apply to PoS coins ? But, in the other hand, is not it the fact that PoS are more human dependent, where PoW is machine dependent ? |
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DolanDuck
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June 08, 2014, 08:15:27 PM |
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I believe your wallet will still stake even if closed as I have opened my wallets several times and got coins from POS I am not 100% sure though
As far as I know, you won't stake if its closed. There might be a few altcoins that are different, I don't know. most of POS altcoin that i used before always like that only stakes if i open its wallet i don't know how about PPC, original POS coin What do u mean by open & close wallet ? The wallet address is open and the private key is confidential... this is what I understand about the states of a wallet. Now, how do I open or close it ? Opening wallet = Open the wallet software. You double click on the icon, it synchronizes, and it starts staking. Maybe he means unlocking wallet instead of opening wallet? POS wallets must be unlocked to start "mining". |
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byt411
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June 08, 2014, 09:06:29 PM |
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I believe your wallet will still stake even if closed as I have opened my wallets several times and got coins from POS I am not 100% sure though
As far as I know, you won't stake if its closed. There might be a few altcoins that are different, I don't know. most of POS altcoin that i used before always like that only stakes if i open its wallet i don't know how about PPC, original POS coin What do u mean by open & close wallet ? The wallet address is open and the private key is confidential... this is what I understand about the states of a wallet. Now, how do I open or close it ? Opening wallet = Open the wallet software. You double click on the icon, it synchronizes, and it starts staking. Maybe he means unlocking wallet instead of opening wallet? POS wallets must be unlocked to start "mining". If your wallet isn't encrypted with a password, you just leave the client open. If it's encrypted, you unlock it and leave it open. Get it? |
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