Proof Of Work Vs Proof Of Stake

What is Proof Of Work?
Proof of work is a system that is used to secure data and ensure that it has not been tampered with. It is a mathematical concept that is used to verify that a certain amount of work has been done in order to secure a block of data. In order to verify the data, a hash function is used. The hash function takes the data and produces a unique output. If the data has been tampered with, the hash function will produce a different output.

What is Proof of Stake?
Proof of Stake (PoS) is a type of algorithm by which a cryptocurrency blockchain network achieves distributed consensus. In PoS-based cryptocurrencies, the creator of the next block is chosen via various combinations of random selection and wealth or age (i.e., the stake).

Difference Between Proof Of Work and Proof of Stake
There are two main types of consensus mechanisms used by cryptocurrencies: proof of work (PoW) and proof of stake (PoS). Both have their own advantages and disadvantages, and selecting the right one for a particular project is a critical decision.

PoW is the most well-known and widely used consensus mechanism. It is used by major cryptocurrencies like Bitcoin and Ethereum. PoW works by requiring miners to solve complex mathematical problems in order to add new blocks to the blockchain. The difficulty of these problems increases as more miners join the network, making it more difficult for 51% to attack the network.

PoS is a newer consensus mechanism that is starting to gain traction. It is used by projects like Cardano and EOS. PoS works by allowing holders of the currency to stake their coins in order to validate transactions. The more coins a stakeholder has, the more weight their vote has. This system is designed to be more energy efficient than PoW, as there is no need for miners to run powerful machines.

Originally Published at: https://bit.ly/3HmCGZy