Cryptocurrency Carpet: Understanding of two main mechanisms of consensus
The cryptocurrency world has exploded in recent years, starting with new coins and chips every day. As a result, there are several different mechanisms of consensus that control these digital currencies, each with its strengths and weaknesses. In this article, we will go into the two most popular mechanisms of consensus: proof of work (POW) and Stake (POS).
Proof of work (POW)
Proof of work is one of the earliest and most widely used consensus algorithms in cryptocurrency. It was already when the Bitcoin protocol was first released in 2009.
How does it work
POW Mountains compete in solving complex mathematical puzzles that include:
- Mags function : Mountains must find a bag that meets certain criteria.
2.
- Check : Other network nodes check the block by solving the puzzles themselves.
Benefits
POW offers several benefits:
* energy efficiency
: POW requires relatively low energy, making it more greener than other mechanisms of consensus.
* Security
: The casual nature of the puzzles makes it difficult for the attacker’s prediction and starts a 51% attack on the network.
* speed : POW blocks are designed and checked at a faster pace than POS.
Disadvantages
POW also has some disadvantages:
* Energy consumption : The energy needed to dig cryptocurrency is significant, thus contributing to climate change and tensioning local power grids.
* Centralization : The need for powerful hardware and high calculation resources can lead to mining centralization.
* Vulnerability : POW complicates a 51% attack on the net because of the casual nature of the puzzles.
Stake (POS) proof
Proof of stock package is an alternative mechanism of consensus, which has been gaining popularity in recent years. It was first introduced by Ethereum creator Vitalik Buterin, and has since been accepted by other cryptocurrencies such as Tezos and Cosmos.
How does it work
POS, Validers are chosen to create new blocks, taking into account their stock package on the network rather than having the calculation power. The process includes:
1
2.
- Block Creating : A random selected checker creates a new block and broadcasts it to the net.
Benefits
POS offers several benefits:
* energy efficiency : POS requires relatively little energy, making it greener than POW.
* Security : The casual nature of the selection process makes it difficult to make the attacker predict the result and run a 51% attack on the network.
* slower pace : POS generates blocks at a slower pace than POW.
Disadvantages
POS also has several disadvantages:
* Centralization : It needs to be confirmed that it is necessary to be confirmers, can cause centralization of the network as more powerful individuals can accumulate more shares and influence.
* Grounding Problems : POS is still in the early stages that may cause less change than POW.
Comparison
| Consensus mechanism Energy consumption (kWh) | Block generation time (seconds)
| — | — | — |
| POW | Low to moderate Fast (10-30 seconds)
| POS | Average (2-5 kWh/million) | Slowly (1-3 minutes) |
Conclusion
The choice between proof of work and proof of shares ultimately depends on the specific needs and goals of your cryptocurrency project.
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