Crypto Academy Season 5 Beginners' course - Task 6: Different types of Consensus Mechanisms

bright15 (59)in SteemitCryptoAcademy • 3 years ago

This is my post for this season 5 task 6 by prof @sapwood that is all on proof of work and proof of stake

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

PoW

PoW full meaning is proof of work and it is one of the consensus mechanism that blockchain make use of when it is verifying transaction. Here, it requires that the members of the blockchain which are known as miners are to be able to solve a complex mathematical puzzle and once the miner have successfully solve the puzzle the miner will be rewarded

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The proof of work also make use of hardware that is powerful that will help the miners in solving the complex puzzle, it is the consensus mechanism that has a poor scaling capacity which can not be able to carry out so many transaction at a particular moment, In the proof of work new token are also mine here.

The proof of work also has an inefficient energy.

PoS

POS has it full meaning has proof of stake, it is also a consensus mechanism that blockchain make use of when it is verifying transaction.
Here, the members that are involved are being know has validators.

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The validators that stake higher are always value than those with less stake and it also has an efficient energy and a good scaling capacity which means that it can carry out so many transaction at a particular point in time.

Difference between PoW & PoS?

PoW	POS
1) Here, reward are been given to the miner who are the members are being rewarded for solving the complex mathematical puzzle	Here, the validator are going to be rewarded with the transaction fee.
2) The energy that is being consume here is very high	The energy that is being use here is lower than POW
3) Here, too many transaction can not be performed at a fast speed rate	Here, too many transaction can not be performed at a fast speed rate.
4) The scalability here is not good	Here, it has a very good scalability
5) Here, there is increase in the supply of the coin on the blockchain.	Here, there is no increase in coin supply and verification procedure is different.
6) Here, verification is been done through mining	Here, it is the ownership of the coin are chosen by validator
7) proof of work depends on the work that is been done by miners which are members of the blockchain	unlike POW, the POS depends on the amount of stake that is been made by validator who are the members of the blockchain.
8) Due to the fact that it requires high energy more funds are being spend	Die to the fact that it requires low energy less fund s is spend.

Advantages & Disadvantages?

Advantages of PoW

In POW, the members which ate known as miners are always rewarded when the successfully solve the complexs mathematical puzzle.
Here, miners have to successfully solve mathematical puzzle.
Here, Verification is been done without identification of personnel.
It is very difficult to be hack because it has high level of security.
It is decentralized meaning there is no third party involvement.
There is formation of new coin

Disadvantages of PoW

Here, there is high energy that is being required here and at the same point energy is also wasted
High amount of funds that is being spend here is excess
Transaction fee here is high.
There is a problem of time wastage because the mathematical puzzle is complex

Advantages of PoS

Here, the energy that is being required is low and by this the energy will mot be wasted.
Transactions performed here are always very fast.
They scalability here is very good which means more transaction can be executed with a fast speed rate.
The fact that least energy is spent more funds will not be spent.

Disadvantages of PoS

Here, once coin is being staked it can not be sold till it is unstake.
Here, reward for POS is low unlike POW
Here, there is discrimination has higher validators are always recognized while the low validators are not.

Which one is better in scaling Capacity? Examples ?

Scaling has to do with ability of the mechanism
to be able to increase transaction number and verification at a faster rate abs by this it allows a block to be able to make many transaction depending on how the transactions is increasing

From my research, it is the proof of stake that has a better scaling capacity because it is here that can enable more transaction to be executed at a faster speed rate even as the transactions are increasing the POS can execute it, it is also flexible and here the speed rate to execute transaction is also fast.

Example of PoS

Cardano
This makes use of POS in running its own system and it also has a token Ada. The token Ada was been created to solve the issue of Bitcoin from the problem of POW, cardano also has the highest market cap after ethereum

Source
Algorand