Cryptocurrency: Understanding the difference between evidence for stocks and work evidence
The world of cryptocurrencies has had a strong increase in popularity in the past decade, with the technology of blockchain a revolutionary way in which we consider money and financial transactions. The two key concepts that lead to the growth of this industry are a deposit proof (POS) and the detection of the work (POW), two different methods with which transactions in the blockchain network are ensured and verified. In this article we immerse yourself in the differences between POW and POW and examine which are more suitable for cryptocurrencies.
Proof of the deposit (POS)
The proof of the share known as a POS is an amicable algorithm in which the validators “give” their own cryptocurrencies in exchange for the right to check the transactions in the network. This method enables users to create new blocks and to design them for validation by other nodes in the network. The first knot to accept the block receives most of the creation of a new cryptocurrency, while other nodes receive minor rewards.
Key features POS:
1.
- Faster timing transactions : POS transactions can be checked and added to the blockchain much faster than transactions in the POW network.
- cheaper : The cost of starting and maintaining POS network is considerably lower than the costs of the POW network.
Proof of work (pow)
The proof of the work, on the other hand, is an amicable algorithm, in which validators “benefit” new blocks by loosening complex mathematical puzzles. This method requires that the nodes first compete in the puzzle competition, and the solution with the solution receives a new block in the blockchain.
Key characteristics Pow:
1.
- Slow time transactions : Transactions in the Pow network can be slower for the time that is necessary to solve and check your hands.
- expensive : The costs for starting and maintaining a Pow network are significantly higher than the costs of the POS network.
Which is better?
With regard to the cryptocurrency, the choice between evidence of the deposit (POS) and the detection of the work (Pow) ultimately depends on the special case of use and requirements. Some factors must be taken into account here:
* Energy consumption : If the energy costs are a significant problem, SOT may be a more appropriate option.
* Transaction times : If faster transaction times are decisive, POS could be a better choice.
* Price : If the costs are the main factor, Pos is probably a way to go.
* Safety : POW and POW have their own security advantages, but POS is generally considered to be safer due to its lower energy conditions.
Remarkable exceptions
There are remarkable exceptions in which one consensus salgorithm can be preferred to another. For example::
* Bitcoin Cash (BCH) : Pow is still a mutual algorithm that uses Bitcoin -Cash, which leads to considerable controversy and changes in network architecture.
* Litecoin (LTC) : POS is currently using Litecoin, which offers faster transaction times and lower energy consumption compared to its predecessor Litecoin Classic.
Diploma
In summary, it can be said that the selection after deposits (POS) and work to work (POW) ultimately depends on your own strengths and weaknesses on your specific needs and goals. If you are looking for a more energy -efficient solution with faster transaction times, POS may be a better option. However, if the costs are a significant problem or the security is of the greatest importance, SOT may still be a practical alternative.
Leave a Reply