Different Consensus Mechanisms: PoW Vs. PoS
Increase in cryptocurrencies: understanding the two main consensus mechanisms
The world of cryptocurrency has exploded in recent years, launching new coins and chips every day. As a result, there are severe various consensus mechanisms that nourish these digital currencies, each with their own strengths and weaknesses. In this article, we are immersed in the two most popular consensus mechanisms: to justify work (POW) and to prove the stake (POS).
Certificate of work (POW)
Certificate of work is one of the earliest and most widely used consensual algorithms in the cryptocurrency. It was first published in 2009 in the Bitcoin Protocol.
How does it work
In POW, miners compete to solve complex mathematical puzzles, which includes:
- HASH function : Mining should find a hash that meets certain criteria.
- Block Creation : The miner who funds the solution adds a new transaction block to the blockchain and can convey to the network.
- Verification : Other nodes of the network justify the block by solving the puzzle.
Benefits
POW offers many benefits:
* Energy efficiency : Pow is relatively low energy use, making it more environmentally friendly than other consensus mechanisms.
* Safety : The random nature of puzzles makes the attacker difficult to predict the result and a 51% attack on the network.
* Speed : Pow blocks are generated and proven at a faster rate than POS.
Disadvantages
POW also has some drawbacks:
* Energy Consumption : The energy needed for cryptocurrency mining is significant, contributing to climate change and the stretching of local electricity networks.
* Centralization : The need for efficient hardware and high calculation resources can lead to centralization of mining operations.
* Vulnerabilities : Pow makes it difficult to start a 51% attack on the network due to the random nature of puzzles.
Certificate of stake (POS)
Certification of the stake is an alternative consensus mechanism that has become increasingly popular in recent years. It was first introduced by Vitalik Butterin, a creator of Ethereum, and accepted by other cryptocurrencies such as Tezos and Cosmos.
How does it work
In POS, validators are chosen by creating new blocks based on their share of the network rather than their computing performance. The process includes:
- Assessment : Validers are distributed by a certain amount of cryptocurrency (bet) that must be kept for a longer period of time.
- Random selection : Select a random list of validators from the set of stakes.
- Block Creation : Random -selected Validator creates a new block and transmits to the network.
Benefits
POS offers serious benefits:
* Energy efficiency : POS requires relatively low energy use, making it more environmentally friendly than POW.
* Safety : The random nature of the selection process makes it difficult for the attacker to predict the result and a 51% attack on the network.
* Slower Tempo : POS generates blocks at a slower pace than POW.
Disadvantages
POS also has some drawbacks:
* Centralization : The need for validators with significant stakes can lead to centralization of the network, as more powerful individuals can accumulate more share and influence.
* Scalability Problems : POS is still in the early stages that can be less scable than POW.
Comparison
| Consensus Mechanism Power Consumption (KWH) Block
| — — —
| Pun Low or moderate Fast (10-30 seconds)
| Pos | Moderate (2-5 kWh/million) Slow (1-3 minutes)
Conclusion
The choice between the proof of work and the certification of the stake will eventually depend on the specific needs and goals of the cryptocurrency project.
