Different Kinds of Consensus Mechanisms - Steemit Crypto Academy Season 5

What is the difference between PoW and PoS?

In order to define differences between the two, it will be necessary to know the meaning of each one now, since in this case both are part of virtual mechanisms carried out in financial ecosystems such as blockchain, let's see.

PoW

Translated into English Proof-Of-Work system, from the beginning the blockchain system has evolved and with the passage of time it has also been strengthened creating an entire ecosystem composed of a virtual financial mechanism.

But nevertheless, along with that, many other systems with pirate purposes have also been created in order to sabotage and saturate said system, and it is then that before this problem, new technologies were born, promoted by means of a mechanism of agreement between the operating system. blockchain and the external component, better known as proof of work POW, this mechanism is now implemented as a security instrument in networks that until now are very popular, such as Bitcoin, which is using the concession algorithm to generate and validate each transaction.

This concession mechanism is developed based on blockchain networks, and this is due to what is known as an Implementation algorithm applied to exercise a specific function within the network system that implements it since its function is to produce and validate for then confirm transactions in order to generate new blocks.

It is then that a competitive environment is created between miners, since to confirm a traction, the miner must have speed for this action, since the number of confirmed transactions will depend on this factor and therefore the one that operates and generates faster and confirms more transactions generates more profits.

PoS

Translated into English proof of stake, which translated is proof of stake, and is known for serving as an algorithm within the proof of stake mechanism implemented in distribution networks, widely used in networks based on cryptocurrencies.

Only here the work of the miner will not depend on the speed with which a transaction is generated in a block, rather it will depend on the amount of crypto it contains, that is, the perceived profit of an individual will be equal to the number of coins that it has and will not depend on the effort it makes when generating a transaction in a block of the chain where it operates.

Differences

Pow

The miners go to the competition to be able to execute transactions and thus obtain guarantees for it.
It is implemented to execute transactions dependent on a blockchain network.
You only need hash power to generate a block.

Pos

This activity is determined by the amount of tokens they have, and the profit received will be the same.
It is applied in cryptocurrency distribution networks.
It needs the distributed concession to carry out its function.

Which is better for scaling capacity? Examples?

If we refer to capacity, better adaptation and speed in relation to the subject, the most implemented and that has been developed with more efficiency, in blockchain networks widely used at this time is the PoW grant mechanism, since this mechanism allows organization and control on all operations produced in block networks, and as they have a high volume in the entire execution and control process, it has been affected by pirate programs trying to access this virtual operations system, however the implementation of this algorithm brought more security and allowed in blockchain systems a total development in addition to providing a better experience in scalability,And with this test, transactions are confirmed and then new blocks are generated. An example of the efficiency of this mechanism is bitcoin and its entire popular trajectory at the crypto-financial level.

In addition to the fact that the decentralized remuneration system is based on all the members of the same network and everything is managed by a mother database and through mining nodes that together carry out the mining activity that ultimately enables the network to maintain itself. by itself, in addition to the generation of encrypted blocks through hash codes where only a mining node can generate and produce it

On the other hand, the PoS proof-of-work algorithm allows the blockchain belonging to a Cryptocurrency to develop its financial origin without any restriction at the system level but especially at the distribution level, only that here the remuneration will depend on the amount of available tokens . such as the largest network in the world Bitcoin. Who uses this Proof of Work Implement in order to make each pull effective and valid.