The consensus mechanisms are a key appearance of blockchain technology, allowing the network nodes to agree with a version of the blockchain, without relying only on the vote of the majority. There are several consensus mechanisms used in blocks, each with their own strengths and weaknesses. In this response, we will examine the differences between the proof of work (JED) and the proof of the rate (POS), two outstanding consensus algorithms.
Proof of work (POW)
Pow is the most commonly used consensus algorithm on bitcoins and other cryptocurrencies, such as Ethereum. Here is a simplified review:
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- The solution is checked by the network : When the miner solves the puzzle, it is broadcast on the network, and its solution is checked by other nodes as part of the process called “haszhing”.
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POW key features:
- High energy consumption: the miners require a significant calculation power, which leads to high electricity costs.
- Energy -Saving: The POW consensus has been criticized for the impact on the environment due to the energy needed to solve complex mathematical puzzles.
- Centralized: the need for strong computers and based on a centralized organ (mining pools) can lead to centralizing mining operations.
Proof of Stak (POS)
POS, also known as “proof of sake”, is an alternative consensus algorithm that has gained popularity in recent years. Here’s how it works:
- The several coins nodes are considered more influential : in the POS knots with more coins or more levels have a higher impact on the network.
- The coins are sent to Pool : each knot has a set of “tables” that represent their participation in the network.
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POS key features:
- Lower energy consumption: POS requires a much lower computing power than POW, which makes it more environmentally friendly.
- Decentralized: The network is decentralized and no unique existence controls the result.
- Honesty: In POS, the selection of miners is random, which can lead to a more correct distribution of mining prizes.
Pow and POS comparison
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Function
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Pow (Bitcoin) |
POS (Ethereum) |
|. — | — | — |
|. Low high energy consumption
|. Impact on the criticized environment not so significant
|. Centralization mining pool centralized network decentralized
|. Honesty random selection of miners random selection but with more influence for big stakes
In conclusion, while both POW and POS are consensus algorithms used in blockchain networks, they differ significantly in terms of energy consumption, environmental impact, centralization and integrity. Pow is still widely used in Bitcoins, but its use has decreased, because other cryptocurrencies, such as Ethereum, have been adopted by POS. As the industry evolves, we can expect more knots to be adopted by alternative consensus mechanisms that balances the safety, decentralization and sustainable development of the environment.
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