cryptocurrency 101: Understanding the two key unanimity mechanisms
The cryptocurrency world is a complex and fast -developed space, and new techniques and unanimity mechanisms are created regularly. The cryptocurrency is based on a decentralized network in the heart that allows users to manage their measures and property without brokers such as banks or governments.
In this article, we deepen the two most commonly used cryptocurrency unanimity mechanisms: evidence (POW) and evidence of (POS). These mechanisms are crucial for working in different cryptocurrencies and have a significant impact on their safety, scalability and placement.
Work Certificate (POW)
Pow is the most commonly used mechanism of consensus in cryptocurrency. It was first introduced with the Bitcoin 2008 hard fork, and many other cryptocurrencies, such as Ethereum, Monero and Litecoin, have confirmed it.
Pow mining workers are competing to solve complex mathematical puzzles to confirm blockchain events. These doughs are designed to be difficult to solve with the current flow of the computer, so the term “job proof”. The first minister to determine the dough complements the new business block block chain and will be rewarded with the recent cryptocurrency.
So it works:
- Mining workers collect and check transactions in the block chain.
- The ministry selects the group events to be included in a new block (“Block Fee”).
3.Cerachi will calculate the mathematical dough in a group chosen for each event.
- The first ministry, which defines the puzzle known as a “job certificate”, is rewarded with the recent cryptocurrency and the right to add such a transaction block block to the circuit.
Pow Benefits:
1
Energy Efficiency : POW requires a significant computing force that reduces energy consumption.
- Security
: The use of complex mathematical puzzles makes it difficult for harmful participants to manipulate the network.
3
Scalability : POW can handle a large number of events per second.
Pow Disadvantages:
1
Energy Consumption : The necessary energy of cryptocurrency well is significant, affecting greenhouse gas emissions and environmental problems.
- Centralized supervision : Mining funds, which are often dominated by large companies or countries, can cause network concentrations.
Reservation (POS)
POS has gained popularity as a more energy efficient alternative POW. It was first introduced with an Ethereum 2016 solid fork and then approved by many other cryptocurrencies.
POS has been selected for validators to create new blocks based on encryption currency balance in its wallets. Validates with a higher amount of cryptocurrency (ie those who own more) have a greater choice to participate in the validation process.
So it works:
- Users pay their cryptocurrency in your wallet or in exchange.
2.
- The best -placed user in the pool is selected as a goalkeeper.
POSITIONS:
1
Energy Efficiency : POS requires significantly less energy than Pow, which makes it more environmentally friendly.
- Increased Security : The beneficials have greater control over their property and the harmful actors are less than manipulation.
3
Reduced transaction fee : As the number of validators increases, as well as fees associated with validation events.
POS DESTRIBUTIONS:
1
Concentration : Using accidental selection set can cause network concentration if a small user group controls it.
- Slower block time : POS can be slower than POW because the validation process lasts longer because of the need for several validators.