The rise of cryptocurrency: understanding the two main mechanisms of consensus
The Crypto Currency World has exploded in recent years, and new coins and tokens have been launched every day. As a result, there are several different consensus mechanisms that run these digital currencies, each with its strength and weakness. In this article, we will break into the two most popular consensus mechanisms: proof of work (pow) and evidence of roles (POS).
Proof of work (Pow)
Proof of work is one of the earliest and most commonly used consensus algorithms in the crypto currency. It’s been a Bitcoin protocol first published in 2009.
How does work **
Pow miners compete for solving complex mathematical puzzles that include:
- Hash -a function: miners have to find a hash that fills certain criteria.
- Block Creation
: a miner that finds a solution must add a new block transaction of blockchain and broadcast it with a network.
- Verification : Other knots online check the block by solving the puzzle yourself.
Benefits
Pow offers several advantages:
* Energy efficiency : Relatively needed relatively low energy costs, making it more environmentally friendly than other consensus mechanisms.
* Security : The random nature of the puzzle makes it difficult for the attacker to predict the outcome and start a 51% attack on the network.
* Speed : Pow blocks generate and check the faster pace of POS.
Disadvantages
Pow also has some flaws:
* Energy Consumption : Energy required for a minute CRIPTO currency is significant, which contributes to climate change and stress of local electrical networks.
* Centralization : The need for powerful hardware and high computer resources can lead to centralization of mining operations.
* Vulnerability : POW makes it difficult to start 51% of the network attack due to a random nature of puzzles.
Proof of share (POS)
Proof of share is an alternative mechanism of consensus that has gained popularity in recent years. He was first introduced by Vitalik Buterin, the creator of the Ethereum, and since then he has been adopted by other cryptocurrencies like weights and cosmos.
How does work **
In POS, validators are selected to create new blocks based on their share in the network, not a computer power. The process includes:
- FUNDER DISTRIBUTION : Validators have been assigned a certain amount of the crypto currency (role) that they are willing to hold for a long period.
- Random selection : The random list of validators was selected from the base base.
- Block Creation : A randomly selected validator creates a new block and broadcasts it into the net.
Benefits
POS offers several advantages:
* Energy efficiency : POS requires relatively low energy costs, making it more environmentally friendly than POW.
* Security : The accidental nature of the selection procedure makes it difficult for the attacker to predict the outcome and start a 51% attack on the network.
* Slow tempo : POS generates blocks to a slower pace than Pow.
Disadvantages
POS also has some shortcomings:
* Centralization : The need for validators with a significant proportion can lead to the centralization of the network, as more powerful individuals can accumulate more proportions and influences.
* SCALU scalability questions : POS is still in the early stages, which can make it less scalable than Pow.
Comparison
| Consensus mechanism | Energy Consumption (KWH) | Block Creation time (seconds) |
| — | — | — |
| Pow | Low to moderate | Fast (10-30 seconds) |
| Pos | Moderate (2-5 kWh/million) | Slow (1-3 minutes) |
Conclusion
The choice between evidence of work and the evidence of roles ultimately depends on the specific needs and goals of your cryptocurrency project.
Leave a Reply