Different Types of Consensus Mechanism-Steemit Crypto Academy Season 4 Homework Post for Task 3
Greetings everyone, I am delighted to share with everyone in the great community yet another exciting homework post task of this season crypto academy I therefore hope to put out m best. This task post seeks to give us all the information on the various consensus mechanisms we have in the crypto world. I will therefore move ahead to make my homework post entry and hope to put out my best. I am therefore grateful to professor @spawood for this great lesson.
What is the difference between PoS & DPoS? Advantages & Disadvantages? Name a few Blockchain projects which use the DPoS consensus mechanism and indicate the scaling capacity?
Proof of Stake is a mechanism that was built up in the year 2011. This mechanism was created by Mr. Sunny King. The Proof of Stake mechanism is an algorithm type of consensus mechanism that is circulating in various blockchain systems we have. This mechanism seeks to make a selection of a validators of the blocks in the blockchain network. That is, with regards to the number of tokens that are been generated by a block creator the individual has chance f been selected as a validator. This mechanism was brought to the limelight to take over the position of the Proof of Work which was in circulation then. It was firstly designed to modify the work of the Proof of work mechanism but as time went on it took over and was on it's own mechanism. It therefore requires high definition equipment for working activities.
Proof of Stake operates in a way that, in a blockchain, before a block is added to the network it has to be verified or validated by a node and this is determined with this mechanism. So, in order for a validator to be selected to get rewards from the network, the individual has to have high number of coins but the selection is randomly done. This gives the opportunity to various miners to make a verification of various transactions with their assets or holdings.
Moving further, the Proof of Stake mechanism is what we have in various blockchains as a result of how user friendly it is and also has less effect on the atmosphere. It does not really involves the use of a lot of high energy related machines for production. This mechanism also goes in a long run to give various users the freedom to make to take part in any activity in the network and aim at their main objectives. This mechanism has a great amount of speed and security which makes it possible for the happening of numerous transactions within few seconds. This mechanism requires that, the various users must have a wallet with good internet connection but should have no fear of been hacked as the system is very secured.
| MERITS | DEMERITS |
|---|---|
| Numerous Transactions occur within few seconds. | Requires a lot of funds to be selected as a validator therefore one has to have a lot of holdings thereby discouraging those with small wealth. |
| It is decentralized system thereby giving users the freedom in the network. | The wallets of users are prone hackers as they always have it open. |
| The miners involve would not be in a position to launch an attack on the system since it will go against themselves. | There is a possibility of the system turning into the a central one as those with much holdings control it. |
This is another great mechanism that was brought into the crypto limelight by Mr. Daniel Larimer in the 2014. This consensus mechanism is one that is of great importance to the various public blockchains we have in the crypto ecosystem. In this mechanism, the individuals that has a hold of the asset makes a selection of delegates that will make the transactions o blocks to go through in the network and therefore gain rewards. A system of voting is been implemented in this mechanism for the selection of delegates. The votes are done in such a way that, those with more assets are likely to be voted for. After that, we have the blocks to be then created. After successfully been chosen as a delegate, the individual goes in long run to create a block to be added to the network and then also make a verification or validation of transactions that do occur in the block. The delegates thereby get rewards for this work done at the end of it all. Not forgetting that, the delegates are been checked in a sense that if one does not perform the require duties, the delegate will be called off.
Moving further, this mechanism does not require the use of high energy equipment and also less energy is involved. It is very safe with the use of it on various public blockchains we have in the ecosystem. As a result of the voting system involved in this mechanism, it makes the scalability of the blockchain to be high.
| Advantages | Disadvantages |
|---|---|
| The manner or system in which the selection of delegates is done makes it fair in a sense that everyone has a chance of been selected. | With this mechanism individuals with less assets do not take part in the voting process since the won't have an impact on the results. |
| One can make a lot or profits if having much assets since they have a great say in the creation of new blocks. | It does not favor those with less coins since they don't have an impact in the voting system. |
| Faster transactions occurs in the mechanism as compared to others. | This consensus mechanism is gradually turning into a central authority since those with much holdings or assets have the power. |
| The energy that is required in the activities of this mechanism is very much less as compared to the others. | The mechanism is prone to attacks since the individuals involved in very small. |
| Proof of Stake | Delegated Proof of Stake |
|---|---|
| This consensus mechanism operates very great with networks that deals with finances. | This consensus mechanism operates very great with social networks. |
| There is less scalability in this mechanism. | In this mechanism, there is high or much scalability within the network. |
| A lot of transactions can not occur in this mechanism. | Many transaction occur in this mechanism. |
| In this mechanism, transactions that happen brings funds to various users. | In this mechanism, transactions that happen do not bring funds to users. |
| This mechanism is a decentralized one since there is freedom within it. | This consensus mechanism is gradually turning into a central authority since those with much assets have a lot of impact in the selection of delegates. |
| The selection of delegates is done through a random process. | The selection of delegates is done through a voting process. |
| The creation of Block is done in a random process as well. | The creation of Block is done through the voting system after the delegates been selected. |
| This mechanism makes good use of certain blockchains such as Cardano, Tezos, Ethereum and so on. | This mechanism makes good use of blockchains such as Steem, Tron, EOS and so on. |
This a social network blockchain that makes a combination of blockchain technology and social network and that of cryptocurrency. Users involved in this platform are been rewarded with some votes for making posts which are plagiarism free. In this platform 3 blocks are created every 3 seconds.
It was created in the year 2018 in the month of January. This project is a type of operating system on a blockchain network. It has scalability of making 10,000 transactions in a second.
This project was created in the year 22017 by Mr. Justin Sun and was then added to the Steemit platform in the year 2020. It has a token called TRX and has a scalability of 1000 transactions within a second.
This platform was created in the year 2016. It was brought into the ecosystem for various companies to implement the use of blockchain. It has a token called LSK and has scalability of one block in a second.
This project was created in the year 2015. This project has a scalability of making 1000 transactions within few seconds.
This project was developed first within this mechanism and a decentralized system as well. This platform has a scalability to make about 1000,000 transactions in one second.
In a nut shell, the Proof of Stake and that of the Delegated Proof of Stake is a very great consensus mechanism that is aimed at improving the activities on the blockchain. They ensure that transactions that do happen have a high amount of scalability which is another aim of this mechanism. This makes sure that there is safe and faster creation blocks within various blockchains.
I am therefore grateful to our professor @sapwood for this great lesson and hoping to continue learning from him. Thank you very much.