Assalamu Alaikum

Greetings

How are you all I hope you will be fine this is my second post but I hope it will not be my last and by Posting a post here I will get a great response and I am grateful to my professor @sapwood who has taught me such a good lesson and so well.

My Home Work

||🔷What is the difference between PoW & PoS? Advantages & Disadvantages? Which one is better on scaling Capacity? Examples?||

🔷Definitions

POW

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🔹Proof of Work

Proof of Work can be a protocol that was developed to form secure digital transactions without having to believe a third party party. PoW can be a way to review current and past transactions. The work put into solving a puzzle generates rewards for whoever solves it, which is known as mining. In other words, this is often an algorithm designed to verify transactions and add new blocks to the blockchain. With Proof of Work, the miners compete to be the most important to solve a complex math puzzle that generates this new block means they are ready to collect some new bitcoins as
• No miner will be able to control the Bitcoin network alone Based on the Hashcash POW system. ..
• Miners must provide evidence that they have done work before proposing a new block.
• At the same time, each solution is easy for the community to review. This makes it easy to check the reliability of all transactions.
• PoW also limits the number of new blocks of data that can be generated. For example, miners can only create a Bitcoin block (BTC) every 10 minutes.

POS

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🔹Proof of Steak

Proof of stake is a consensus algorithm that decides who will validate the next block based on the number of coins you have, rather than having miners decipher cryptographic puzzles using processing power to verify transactions, as is the case with traditional Proof of Work.
• The likelihood of validating a new block is determined by the size of a person's participation.
• The Validator does not receive a block bonus, but collects network fees as a bonus.
• Peercoin was the first cryptocurrency to implement a full-scale Power of Stake consensus model.
• Monopoly management and energy consumption.

🔷Difference between POW and POS

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🔸POW	🔸POS
Proof of Work (POW) consists in defining an expensive computer calculation called mining blocks.	Hackers would need 51% computing power to add a malicious block.
The prize is given to the first to solve the calculation of each block.	Specialized equipment to optimize the computing power.
Miners fill in the power of the computer be the first to find a solution.	The creator of a new one Blocks is selected based on the number of coins he has.
The mining capacity depends on the computing power.	4This mechanism makes the pose mining much more energy efficient.
Group of miners in mining pose for higher mining efficiency.	POS systems are more decentralized and significantly more profitable.
Receiving the block reward depends on how much work a minor does.	Initial investment to buy participation and build reputation.

🔷 ||Advantages and Disadvantages ||

🔹POW

Advantages 👍

▪️PROOF OF WORK is neutral. You don't need ETH to get started, and block rewards allow you to move from ETH to a positive balance. With POS you need ETH to get started.
▪️POW is a proven consensus mechanism that has kept Bitcoin and Ethereum secure and decentralized for many years.
▪️Compared to Proof of Stake, it is relatively easy to implement.

Disadvantages 👎

▪️Proof-of-work uses up most energy that it' dangerous for the environment.
▪️If you would like to mine, you would like such specialized instrumentality that it' a giant investment to start.

🔹POS

Advantages👍

▪️It consumes less power and is more environmentally friendly.
▪️More people are incentivized to run the nodes thus making the system decentralized.
▪️Offers various possibilities to the participants because it is not necessary to invest in expensive equipment.

Disadvantages 👎

▪️Validators with a higher quantity of coins get more power on the network and a higher reward.
▪️Can cause a monopoly problem that undermines this decentralized structure.

🔷Which one is better in scaling Capacity?

As you know that we have read and understood all the transaction procedures on both of these PoW and PoF in this lecture, it shows us who has more benefits and who has less.We have also seen the differences in them and we have also seen the most beneficial of them.According to my studies and my understanding, PoS is far better than PoW because PoW has a lot of consumption, expensive and it is very old, while PoS is a new modern way and cheap.Apart from all this, the speed of the transaction is very low in the proofwork, but the speed of the transaction is very fast in proof of steak and the benefits are high, so I would better understand that the proof steak is a very good way and it has a better scaling capacity.

Examples:

Cardano

Solana

Algorand

Tezos

Celo

Mina

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💠Conclusion

I got to learn a lot of things in today's lecture that I didn't know before.In this I know how PoW and how PoS work. What is the procedure for PoW and PoS to work together.Who has more benefits and who has more losses and finally I came to the conclusion that PoW has an old method and a cosytly than PoS which is a modern method and a very cheap procedure, so I would prefer it.And I am very grateful to my professor @sapwood who has given me such a good lecture and I got to know so much more than I did not know before.

Submitted by:

@alihassanraza

Submitted to:

@sapwood

Cc:

@sapwood
@dilchamo