The rise of cryptocurrency: Understand the two main consensus mechanisms
The cryptocurrency world has exploded in recent years and new pieces and tokens have been launched every day. Consequently, there are several different consensus mechanisms that execute these digital currencies, each with its strength and weakness. In this article, we will penetrate 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 consensus algorithms and the most commonly used in cryptocurrency. It was a Bitcoin protocol published for the first time in 2009.
How works **
POW minors compete to resolve complex mathematical puzzles that include:
- Hash -a Function: Minors must find a chopping that fulfills certain criteria.
- Creation of blocks : A minor who finds a solution must add a new blockchain blockchain transaction and distribute it with a network.
- Check
: Other online nodes check the block by solving the puzzle yourself.
Benefits
Pow offers several advantages:
* Energy efficiency : relatively necessary of relatively low energy costs, which makes it more environmentally friendly than other consensus mechanisms.
* Security : The random nature of the puzzle makes it difficult for the attacker to predict the result and start an attack of 51% against the network.
* Speed : The barage blocks generate and check the faster rhythm of POS.
Disadvantages
Pow also has some faults:
* Energy consumption : The energy required for a minute of CRIPTO currency is important, which contributes to climate change and the constraint of local electrical networks.
* Centralization : The need for powerful equipment and high computer resources can lead to the centralization of mining operations.
* Vulnerability : POW makes it difficult to start 51% of the network attack due to a random nature of the puzzles.
Proof of the part (POS)
The proof from the part is another consensus mechanism that has gained popularity in recent years. It was first presented by Vitalik Buterin, the creator of Ethereum, and since then it has been adopted by other cryptocurrencies such as weights and cosmos.
How works **
In POS, validators are selected to create new blocks according to them in the network, not a computer feed. The process includes:
- Distribution of the funder of funds : The validators have received a certain quantity of the cryptocurrency (role) that they are ready to hold for a long time.
- Random selection : The random list of validators was selected in the base of the base.
- Creation of blocks : a random selected validator creates a new block and diffuses it in the net.
Benefits
The POS offers several advantages:
* Energy efficiency : POS requires relatively low energy costs, which makes it more environmentally friendly than POW.
* Security : The accidental nature of the selection procedure makes it difficult to predict the result and start an attack of 51% against the network.
* slow tempo : the POS generates blocks at a slower rate than POW.
Disadvantages
The POS also has some shortcomings:
* Centralization : The need for validators with a significant proportion can lead to the centralization of the network, because more powerful individuals can accumulate more proportions and influences.
* Questions of scalabity of Scalu : the POS is still in the first stages, which can make it less evolving than POW.
Comparison
| Consensual mechanism | Energy consumption (kWh) | Block creation time (seconds) |
| — | — | — |
| POW | Low to moderate | Fast (10-30 seconds) |
| POS | Moderate (2-5 kWh / Millions) | Slow (1-3 minutes) |
Conclusion
The choice between work evidence and evidence of roles ultimately depends on the specific needs and objectives of your cryptocurrency project.