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Privacy and security have always been a ground for debates in the crypto industry. Hence, the foundation of a consensus mechanism in the blockchain is important to sustain the network. Ultimately, these consensuses are used to achieve an agreement on a single data value among an array of distributed processes and cryptocurrencies. So, whenever there’s a system failure, a correcting mechanism is thereby correcting the errors. When comparing Proof of Stake vs Proof of Work side-by-side, the difference is pretty obvious.
Today we are all on the verge of seeing the Proof of Stake (PoS) consensus mechanism to revolutionize the existing Proof of Work (PoW). While both of these consensus mechanisms aim to regulate the legitimacy of blockchain’s decentralized public ledger, the PoS believed to be an upgrade. Mainly to circumvent security infiltration issues like a 51% attack. That means the PoS algorithm is more resistant to an attack, and it helps to regulate the issuance of new units of its supply more diligently. The upshot? All of it is happening without the aid of a central party.
So, to help you understand the differences between Proof of Stake and Proof of Work better, we’ll be highlighting the dissimilarities. That includes the mining mechanism, transaction verifications, safety, and more.
What Is Proof of Stake?
The Proof of Stake is an upgraded consensus algorithm primarily aimed to solve problems the current Proof-of-Work is facing, including high electricity costs and security issues. Though both of these algorithms strive to solve the same problem, the process of reaching the goal is relatively different.
The introduction of PoS is to eradicate the problems Bitcoin’s PoW system is facing. As compared to Bitcoin’s PoW consensus, the PoS aims to stray away from the dependency on computer power to form a well-defined sequence of blocks. So, instead of miners competing against each other to complete a transaction on the network, there won’t be any competition to cherry-pick a person to add blocks.
Ultimately, PoS replace miners with validators to lock up a stake within a crypto ecosystem. Hence, these blocks are referred to as minted rather than mined.
What Is DPoS?
Delegated Proof of Stake (DPoS) is a contemporary consensus mechanism to improve scalability without compromising the incentive structure built on…
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