Different types of Consensus Mechanisms- Steemit Crypto Academy Season 4 - Homework Post for Task 6
(2) 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?
Blockchain is a decentralized Distributed Ledger Technology which contain series of block that include transaction information on network.Users have power to check on their own transaction valid or not by using the protocol which is known as consensus algorithm.
Different Blockchain have different consensus algorithms. Some of them are,
- Proof-of-Work (PoW)
- Proof-of-Stake (PoS)
- Delegated Proof-of-Stake (DPoS)
- Proof-of-Capacity (PoC)
- Proof-of-Authoriety (PoA)
What is PoS ?
Proof-of-Stake (PoS) is a method of Validating transactions. Miners no need to use specific nodes/hardware in PoS method and they can use Normal PC to suffice their Cryptocurrencies.
Users in PoS system can stake their cryptocurrencies by locking up them by certain intervals and the system will select the validate of nodes for next block.
There are 3 facotrs which may determine the selection in PoS.They are Randomization, Caoin age & Amount of Stake. Then the miners will be rewarded by the funds from the transaction fees in PoS system.
What are the Advantages & Disadvantages of PoS ?
Advantages
- No need of specific Computer hardware / Nodes.
- Low power consume Energy effective
- Environmental friendly
- Prevent fraudulent activities and will not loose stakes.
- Validators may chosen with amount of stakes (higher the stakes higher the chance) and the duration of their token stakes(longer the time will get high chances)
Disadvantages
- Users need some pre- purchased / pre earned token to start PoS chain.
- Users who can pre- purchased higher amount of tokens may control the system
What is DPoS ?
Delegated Proof-of-Stake (PoS) is built with alternatives of both PoW and PoS system to prevent fraudulent use in Blockchain. It also reduced the high energy use in the blockchain system.This system is comparatively faster than PoS and more Scalable.
What are the Advantages & Disadvantages of DPoS ?
Advantages
- More democratic
- Every member gets equal opportunities to be elected or voted as a witness.
- No need of specific hardware and high power.
- Energy effective
- No (or very low) transaction fees
- Environmental friendly
Disadvantages
- Not a Fully decentralized system.
- Number of witnesses are limited.
- Not good to use in Financial networks.
What is the difference between PoS & DPoS?
| Proof-of-Stake (PoS) | Delegated Proof-of-Stake (DPoS) |
|---|---|
| Decentralized | Semi Decentralized |
| Better to use for Financial Purposes | Better to use for Social use |
| There is transaction fees | No transaction fees |
| Comparatively less Scalable | Comparatively more Scalable |
| Minors will reward with funds from transaction fees | Staking rewards will distributed for validators. |
| N/A | To elected as a validator, every user will get equal oppotunities |
| Comparatively less slow | Comparatively faster |
Name a few blockchain projects which use DPoS consensus mechanism and indicate their scaling capacity.
Scalability is the amount of transactions per seconds(TPS). Following are some DPoS mechanism and their scaling capacities.
- Bitshare - around 100 000 TPS
- TRON - over 1 000 TPS
- Telos -around 10 000 TPS
- EOS -around 10 000 TPS
- NTX
- LISK
- Steem
I hope you all learn more about "Different types of Consensus Mechanisms" from this post.
Thank you