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Hello, dear steemians.

I am so excited to participate in this homework task 6 which is about Different types of Consensus Mechanisms by professor @sapwood. Professor @sapwood deserves a big thank you for taking the time to digest this lecture and make sure we understood it. This lecture was quite beneficial to me because I gained a lot of knowledge from it. The questions I choose to answer from the list are listed below.
Lets start,

QUESTIONS

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

What is the difference between PoW & PoS?

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Lets first discuss the concepts of PoW and PoS. then we will differentiate it.

POS:

Proof of Stake (PoS) is a consensus technique that allows miners to mine cryptocurrencies while also validating block transactions depending on the quantity and amount of cryptocurrency they own. Proof of Stake was created as a substitute for Proof of Work (PoW).

There is no need to solve puzzles in PoS Consensus, as there is in PoW. A new block is generated at random here. This randomness is determined by the quantity of money invested. Those that construct a block are rewarded.

In comparison to PoW, PoW is quite energy-efficient. Because mining does not necessitate the usage of powerful computer equipment. Users must lock some of their tokens, and for their staked tokens, they are paid with transaction expenses.

POW:

Proof of Work is the first and most widely used consensus mechanism in blockchain technology, and it is used to verify transactions and add new blocks to the chain.

The purpose of employing the POW algorithm is to provide security for the system network against any type of hacking or cyber-attack.

Bitcoin could be a good example of a PoW system that works.Blockchain systems are known to be decentralised. As a result, validating transactions in this system is extremely difficult. This complexity has been overcome by the PoW consensus technique, which has resulted in a secure system.

It employs the concept of mathematical problems to solve a difficult puzzle. When a minor solves the puzzle, the transaction is saved on the network. The miner who has successfully solved the riddle gets rewarded after a valid transaction.

Differences between PoW and PoS

Proof of Work (POW)	Proof of stake (POS)
PoW Consensus is when a miner mines a token in the blockchain network and is rewarded for verifying the transaction.	PoS Consensus is a system in which users invest their tokens and are paid for it.
For mining, the PoW Consensus necessitates the use of powerful computer equipment.	In the PoS Consensus, powerful computer equipment is not required.
PoW miners are rewarded for solving puzzles and creating new blocks.	Users of PoS are rewarded for their investment in the form of transaction fees.
Users in PoW must mine by solving challenging riddles.	Users must lock some of their tokens as an investment in PoS.
Because of expensive hardware requirements and hardware that consumes too much electricity, the PoW algorithm is a little slower and more cost-effective.	On the other hand there is no need for high-power-consuming gear, PoS is substantially more efficient and less expensive than PoW.
PoW makes blockchain networks extremely secure and difficult for miners to harm.	On contrary, It is less secure

Advantages of PoW:

Secure an entire network.:

To begin, this approach can be used to secure a network as a whole. This is because, with such a vast number of mining computers vying with each other to solve and obtain a certain answer, altering the network would necessitate even more processing power, making it nearly impossible for anyone acting in bad faith to do so.

Equitable:

PoW is thought to be more equitable than PoS because the miner who receives the reward is the one who is able to answer the puzzled number to the best of his ability. As a result, the miners deserved their pay.

It's Tough to Manipulate:

Blockchain hashes make it difficult for manipulators to change the data. Even if they want to give it a shot, they'll have to figure out the key from jumbled numbers that have been modified, which means they'll have to spend a lot of money to compete with miners' pricey gear that assist them in mining blocks.

Security:

The security of blockchain is very well maintained because it is difficult to manipulate in the middle of the process of building blocks. Furthermore, after the block has produced, manipulating it becomes more difficult.

Disadvantages of PoW:

Excessive usage of energy:

The first disadvantage is the excessive consumption of energy. A lot of energy is expended due to the additional computational work required to solve the riddles. This energy is actually harmful to the environment.

Specialized equipments:

To utilise PoW, you'll need specialised equipment, such as a computer, to maximise processing power. This entails a high price.

Security is assured:

Furthermore, in PoW, adequate security is only guaranteed if there is a huge network of competing miners. With a tiny network, hackers can gain access to a bigger amount of the network's processing capacity, allowing them to attack the system.

Centralised mining:

Finally, while PoW is regarded as decentralised, it is not. Consider Bitcoin, the world's most decentralised network. Three mining pools are in charge of the computational power. As a result, it is regarded as centralised mining.

Advantages of PoS:

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It stabilises the price of coins:

In PoS, the price of coins is stabilised since new coins are not given as a reward to the next node's validators. This further decentralises the PoS system by eliminating the need to mine additional blocks through mining pools.

Blocks are forged:

Blocks in the Proof of Stake consensus mechanism are forged rather than mined. The amount of energy needed in mining the blocks will be reduced as a result of this forging. When compared to block forging, block mining consumes a lot of energy.

Energy efficiency:

Because PoS does not require computer hardware to mine the blocks, the amount of energy consumed is lower and more inexpensive. Even when compared to Proof of Work (PoW), which involves the use of computer hardware to mine, PoS uses less energy.

Security:

Third parties or scammers cannot steal staked tokens on PoS. This is because, if the system identifies any fraudulent activity, the hardware or node will lose the tokens or coins that were staked. This makes stealing users' stakes exceedingly difficult, if not impossible.

Disadvantages of PoS:

Security Issue:

A PoS network's security cannot be compared to that of a PoW network. This is due to the fact that bad actors do not need to invest money on advanced technology to compete with validators. Following that, the work required to perform manipulation is not nearly as great as the effort required to compete with miners in PoW. When validating a block, they might start a new fraud chain and reverse the transaction.

Users have to be rich:

Before employing PoS, users must be wealthy. Because a high level of investment equals a high level of return.

Centralization:

The more the centralization of PoS, the greater the risk to security.

It is not possible to sell and stake coins at the same time in a PoS system.

Which one is better in scaling Capacity? Examples

SCALING CAPICITY:

The time of transactions in the blockchain can be regarded as scaling capacity. The number of validated transactions per minute could be increased by scaling capacity.

Because the validators do not spend their time on demanding computer tasks, the Proof-of-Stake network has a significantly higher scalability than the Proof-of-Work network. Because the equipment utilised is less expensive than PoW, it can save money and time. Validators may finish a large number of nodes at once, but miners in a PoW network need a long time to validate a single block..

Examples of Pos:

Bitshares:

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The Bitshares blockchain project can process around 100,000 transactions per second (TPS).

Tezos(XTZ):

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EOS:

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The EOS blockchain project can process approximately 10,000 transactions per second (TPS).

Nano:

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The Nano project can process more than 1,000 transactions per second (TPS).

Tron:

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Tron's blockchain project can perform more than 1,000 transactions per second (TPS).

Conclusion:

The consensus process offers a lot of benefits and is very important to the blockchain since it improves security and builds trust among users. The consensus mechanisms of Proof of Stake (PoS), Proof of Work (PoW), and Delegated Proof of Stake (DPoS) are all crucial to the blockchain project since they each perform a unique function.

Thankyou

Cc:
@sapwood
@steemitblog
@dilchamo