Consensus mechanisms in the crypto currency: Understanding the proof of work (POW) and the evidence of share (POS)
Crypto currencies, Such as Bitcoin, Ethereum and Others, are digital or virtual currencies used by cryptography for safety and decentralized control. In Order to Maintain the Integrity of these crypto currency, A Consensitive Mechanism, Required to Confirm Transactions and Ensure That All Participants Agree on the State of Blockchain is.
In this article, we will be carried out in the two most common mechanisms of consensus used in the crypto currency: proof of work (power) and evidence of Roles (POS).
Proof of Work (POW)
Proof of work is one of the earliest and most commonly used consensus algorithms. It was first presented by Satoshi Nakamoto in 2008 as a solution to problems with diffressy in the bitcoin mining process.
Here’s How Pow Works:
- Rudari Competes : The Miners Compete for Solving Complex Mathematical Puzzles That Require Significant Computer Power.
- Solving the puzzle : A Miner that resolves the puzzle first adds new blocks of blockchain transactions and broadcasts them into the network.
- Validation : Validators (miners) who solved the puzzle first have a Greater Chance of Being Chosen to Create New Blocks, which they thenbroadcast Into the Net.
- Energy consumption : Solving Captive Puzzles Requires Significant Computer Power, which can lead to high energy consumption and environmental degradation.
Example: Bitcoin Mining
To Illustrate How Pow Works, Let’s Consider the Example:
- Solving the puzzle : Rudar Solves a Complex Mathematical Puzzle That Requires 100 Million Computer Cycles.
- Awarded : Miner must create New Blocks of Transactions and Broadcasts Them into the Network.
- Energy consumption : The Miner Spent Approximately 10 minutes of electricity to solve the puzzle.
Proof of Share (POS)
Proof of Share is a consensitive algorithm that satoshi nakamoto introduced in 2014 as an alternative to powru. It is designed to be more energy -efficient and more environmentally friendly.
Here’s How Pos Works:
- Stakeholders Participate : Anyone Who Owns or Has a Certain Amount of Crypto Currency Can Invest Their Coins.
- Walidators
WERE SELECTED: A Group of Validators (stakeholders) was randomly selected from the owner’s base.
- The Roles are Burned : Validators with Larger Roots Have More Chances to Be Chosen To Create New Blocks, which They Then Broadcast Into The Net.
- Energy consumption : Creating a New Block in Pos Requires Less Computer Power Compared to Pow.
Example: Ethereum’s Gas Validation
To illustrate howp works on Ethereum, Let’s Consider the Example:
- Investment and Validation Verification : Anyone Who Owns or Has A Certain Amount of Ethereum Can Install Their Coins.
- Walidators WERE SELECTED: A Group of Validators (stakeholders) was randomly selected from the owner’s base.
- Gas Based on Gas Based : A Largest Gas Limit to Create New Blocks Must Create A New Block.
- Energy consumption : Creating a New Block in Pos Requires Less Computer Power Compared to Pow.
Conclusion
In Conclusion, Both the proof of the work (Pow) and the proof of the share (POS), Widely Used by the Mechanisms of Consensus is in the cryptocurrency currency. Although Pow was the original solution that satoshi nakamoto introduced in 2008, Pos Gained Popularity As An Alternative because of its Potential Energy Efficiency and Environmental Sustainability.
However, it is crucial to note that both algorithms have their limitations and vulnerability. For example, Pow is susceptible to mining asic (an integrated circle specific to the application), while pos can be vulnerable to 51% of the attack IF one entity controls more than half of the rolles.
