Crypto Academy Season 3 Beginners' course - Task 4: Different types of Consensus Mechanisms ||by @allan.fakeer
What is the difference between Proof of Work & Proof of Stake? Advantages & Disadvantages? Which one is better in scaling Capacity?Examples?
Before going to differentiate the PoW and PoS, we are going to discuss the basic concept of both.
PoW is an abbreviation of Proof of Work. It is types of Concensus algorithm that work in a way in which new block is connected or added to the chain when computer solves the mathematical complexes or puzzles.
PoS is an abbreviation of Proof of Stake. It is type of Concensus algorithm that work in the way in which new block is added to the chain after validation of block based on the weighted stake that a particular person have. All is dependent on amount of stake and reputation that we have.
Lets discuss the difference between Proof of Work and Proof of Stake
Proof of Work | Proof of Stack |
---|---|
In Proof of Work the number of Block mining is depend on how much mathematical problems and puzzles are solved | In Proof of Stack the validation of new block is depend on the how much stakes a particular person have. |
in Proof of Work Validator get reward on the validation of block by solving the mathematical problems as and puzzles. | Person who validate the Block do not get benefit of reward on the behalf of Validation of Block, Validator gets network fees as reward. |
It is less efficient than Proof of Stack | Proof of Stack is more efficient |
It is cheaper and then POS | It is costly then POW |
In Proof of Work our starting investment is to buy the Hardware | In Proof of Stack our First investment for getting stack and improve the reputation |
Each Block is add to the chain after solving the mathematical problems and puzzles | In Proof of Work There is no problem solving procedure. Here Block is added to chain on the behalf of algorithms that are totally based on the Stakes of User |
It is used by the well known crypto coin is Bitcoin. Function is used by Bitcoin is SHA256 | Some other Alt coin are used Proof of Stack. EOS, ADA and ATOM are the coins that use Proof of Stack consensus algorithm |
Its Network is Decentralized | It is Centralized in nature |
Advantages and Disadvantages of PoW
Advantages
- PoW is decentralized based system.
- Transactions are executed in accurate, fast and reliable way.
- Validator gets reward in the form of Blocks.
Disadvantages
- Lot of power and electrical energy is require to solved the mathematical problems which caused as environmental pollution.
- Hacker can hack this network if hacker has 51 % mining process.
- Commercial Transactions are time consuming in proof of Work.
Proof of Stack
Advantages
- If we have more stacking amount than it is efficient to validate the blocks and we do not need any technical training.
- Become a Validator is easy if we only have resources to take stakes.
- Proof of Stack is more Scalable then other.
Disadvantages
- Proof of Stack is centralized network in nature.
- Stuff like Reputation is dependent on the money that is staked.
- In Proof of Stack the chance of Wrong validation of Block is present.
Which one have better scaling capacity? Eamples?
Before comparison we will understand that what is scaling capacity. Scaling capacity means that the number of transactions execution per unit time. In this context we will see that Proof of Stack has more scaling capacity then Proof of work. This is why because Proof of work has smaller block size. In this way PoS offers good scalability performance then PoW. In Proof of Stack blocks are verified and validated on the behalf stake volume. In this way less time is consume per transaction and less energy is require to execute the transaction.
Example:
Proof of Work Transaction Executes | Proof of Stake Transaction Executes |
---|---|
Bitcoin Executes 7 Transactions per unit time | On the other side Polkadot executes round about one Thousand transaction per unit time |
Ethereum executes Thirty Transactions per unit time | Other side TRX executes round about two thousand transactions per unit time |
Thank you professor: @reminiscence01
Hi @allan.fakeer, Thank you for taking interest in the 4th Task of the Beginners Fixed Class. Your grades are as follows:
My Review and Suggestions:
It's Proof Of Stake.
Many of your explanations are still too shallow.
There are some grammatical errors, please fix that.
Improve your writing skills even more by studying "Markdown Style Guide".
Thank you!