Crypto Academy Season 3 Beginners' course - Task 4: Different types of Consensus Mechanisms by yug75

INTRODUCTION

Hello friends of crypto academy and porf. @sapwood, this point I give my participation to the assignment made by @yug75, who tells us about the consensus protocols wont to the blockchain network.

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What is PoW(Proof of work )

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It is very easy, it's a race to ascertain who has the best computing capacity to be ready to mine a block and every one its transactions, the one who gets it's the one who collects the reward that normally comes in token format, these sorts of folks that is generally related to companies is taken into account miners

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What is pos(proof of stake)

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This consensus depends on the quantity of tokens you've got in your possession, as a bet, the one with the very best amount to bet features a greater probability of collecting the reward than this, because the previous one comes within the format of the mined tokens, this coins are often DASH, NEO, TEZOS, PPC, ATOM, BCC, NEO, BLAS, STRAT, XSPEC, PIVX, ESP and ALTCOM

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Difference between POW and POS

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POW	POS
1.The possibility of mining a replacement block are often measured by the quantity of computing work done by the miners	1.The possibility of validating a replacement block are often measured by the quantity of coins possessed by the miner.
2.Invest in the buying of hardwares	2.Invest within the building of reputation and buying of stakes.
3.The miner will need to compete in other to feature the block to the chain with the utilization of his computing power	3.here the block creator will only got to be selected through algorithm process base on his or her stake .
4.The systems use consume more electricity to hold out its operations	4.The systems use less electricity to hold out its operations.
5.Rewards ars given to each first minner that solves the cryptographic puzzle	5.No reward is given on a validator gets a network fee instead.

Advantages/Disadvantages of POW

Proof of labor (PoW) Advantages:

• Faster when solving a mathematical problem and being highly secure.

• Democracy that permits anyone to practice mining.

• Security is high being a decentralized process where there's no regulatory entity.

Proof of labor (PoW) Disadvantages:

• It causes tons of environmental damage by the high power consumption by the powerful machines.

• Although anyone has the likelihood to mine, this becomes a touch difficult, thanks to the high cost of the machines that now bypass an outsized sector of individuals .

• With numerous people in mining, some with more power than others, it makes the rewards less and a touch unfair by comparison.

Advantages/Disadvantages of POS

Proof of Stake (PoS) Advantages:

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• You don't need a strong machine to participate.

• It doesn't generate any environmental damage, almost canceling the value of energy.

• You can get an equal profit consistent with our investment.

• If we've tons of participation we might be being more rewarded.

Proof of Stake (PoS) Disadvantages:

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• It polarizes the system a touch , taking under consideration that the large beneficiaries would be the most important investors.

• Something centralized is made when someone gets 51% of the cryptocurrency, taking access from the network.

• Security problem when two transactions are often verified at an equivalent time in several blockchains, something that would cause great damage.

Conclusion

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Undoubtedly, these consensus algorithms are fundamental within the cryptographic world, the PoW proof of labor features a very efficient way of using where miners compete to validate transactions and thus obtain rewards from it, this validation process is given through puzzles and mathematical processes that miners solve by doing trial and error again and again until they achieve it, this needs continuous electricity consumption unlike the PoS proof of stake , it's administered randomly where the miners must have variety of coins and a stake within the network, once chosen you'll be ready to validate the transactions and make new blocks. This offers you excellent scalability and great performance in transactions.