Blockchain Consensus Mechanism - Steemit Crypto Academy Season 4 - Homework Post for Task 6

in SteemitCryptoAcademy3 years ago (edited)

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Greetings everyone am here again to complete my assignment on Blockchain Consensus Mechanism lectured by@sapwood. Below are the questions and answers stay tuned.

What is the difference between PoW & PoS? Advantages & Disadvantages? Which one is _better in scaling Capacity? Examples?

INTRODUCTION

Before I go in details I will giving you a hort description on the Definition of Proof of Work and Stake.

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Proof of Work

Proof of Work is a type of cryptographic whereby a party needs to prove that a specific Computational effort that have been spent. Validators can always confirm this expenses with the minimum within their power.

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Proof of Stake

Proof of Stake consensus mechanism that is use to confirm cryptocurrency transactions. In this system people with cryptocurrencies stakes their coins, in return giving them the right to check for new blocks of transactions and then to the block-chain.

What is the difference between PoW & PoS?

BasisProof of WorkProof of Stake
Workingauthenticity of transactions are set by solving cryptographic puzzlesauthenticity of transactions are set on the basis of ‘stake’ in the network
Chances of MiningThe chances of mining depends on computational work done by the minerChances of authentication of a new block hopes on the number of coins a person possess
Energy UseProof of Work consensus has less energy efficient with low costProof of Stake consensus has high energy efficient with high costs of resources and also energy consumption
Securityspending on blockchain could help hackers gain control over 51% of computation power for carrying out dangerous attacks.It is hard for hackers to have 51% of stake in a blockchain network.
RewardsFirst miners are rewarded for helping solving the cryptographic puzzle for every block.corroborators dont receive any block reward and settle for network fees as their reward.

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Disadvantages of Proof of Work

There are many Disadvantages of Proof of Work, but I will be giving two primary disadvantages of Proof of Work.

1)
The Proof of Work system waste a lot of energy, making it very bad for the environment. In a situation where computers carries out extra computational work, the more electricity is used. This process might add more amount of excess electricity consumption. This process has made Proof of Stake a greener alternative.

  1. Proof of Work block-chains gives room for sufficient security when there is a large number of miners competing for rewards. In a case whereby the miner are not much there is every possibility that hackers could gain access to the network computational power known as 51% attack.


Advantages of Proof of Work

  1. Proof of Work are better way to deter spammers. For example if there is an amount of work is needed a particular process (sending emails) there will be enough computational power for spammers to send a huge number of unrequested emails.


  2. Proof of Work gives maximum security to a network where there is much miners.


  3. It uses a Proof of Work consensus mechanism. In a case where enough computers are competing for a specific solution then the power needed to overwhelm and control a network that becomes unreachable for any single bad actor.


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Advantages of Proof of Stake

  1. They are energy efficient

  2. Transactions on Proof of Stake are faster and inexpensive.

  3. It don't need a special equipment to participate.

Disadvantages of Proof of Stake

  1. They are not as authorized in terms of security as proof of work.

  2. Users on Proof of Stake with much coins can have much influence during Transaction verification.

  3. Some currencies on Proof of Stake requires locking up staked coins for a little amount of time.

Which one is better in scaling Capacity? Examples?

Prof of Work is used and tested in many crypto projects. But for a scalable capacity, Proof of Stake algorithm provides a more scalable block-chain with a higher transaction and few coin has adopted the method like DASH coin and many others and also it is less secure than Proof of work.

@sapwood here is my assignment Thanks 😊

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