Hi everyone, I hope you are right and enjoying your life with the blessing of Allah. I'm back again with another post which is on Task 6. In this post, we have three questions. We will discuss question 1. So, let's start.

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What is the difference between PoW and PoS? Advantages and Disadvantages? Which one is better in scaling capacity? Examples?

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What is PoW?

PoW

The mean of PoW is Proof of Work. It is one of the mechanisms blockchain technology used in the verification of transactions.
The verification of the transaction is been made by a person who works the problem of the hash algorithm to decrypt the transaction details and thereby approve them by adding them to the blockchain.
proof of work is connected or linked to the bitcoin. It acts as a protocol to perform an electronic transaction that is secured from cyber attacks and safe from third parties. It is also decentralized.
PoW was adapted by Hal Finney in 2004 to secure digital money using the SHA-256 hashing algorithm. This concept forms the basis for other cryptocurrencies and allows security and a decentralized consensus.

What Is Proof of Stake(PoS)?

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The mean of PoS is proof of stake. It is another mechanism for the verification of transactions of cryptocurrency.
PoS is a consensus algorithm that runs on the ability of the person to mine and validate electronic transactions based on the number of coins. More numbers of coins give the power of mining to the owner. This is an alternate proof of work.
In fact, the PoS concept is centralized and the first Cryptocurrency in the market to carry out a complete and thorough PoS consensus model is Peercoin. It can confirm transactions and create new blocks based on the proportion of coins. proof of Work is less risky for an attack.

What is the difference between PoW & PoS?

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Proof-of-work	Proof-of-stake
The capacity of miners is based on the numbers or amount of labor for mining.	The amount of coins a person owns determines whether a new block is valid or not.
Proof of Work is designed to make the best use of processing power	while Proof of Stake is a standard server-grade unit that would suffice.
Proof of Work is very cheap and requires less energy or power for running.	While in Proof of Stake is very expensive and requires more energy and power.
In proof of work, hackers require 51% of computation power to hack this machine. This computation power refers to how this machine works fast.	For hacking Proof of Stake, the hackers require 51% of all digital currency on the network, this is impossible.
In Proof of Work, the first investment is to purchase hardware.	In Proof of Stake, the initial investment is to buy digital currency like bitcoin or Ethereum, etc.
Proof of Work is limited in its use and scale. It is not too fast in the mechanism.	Proof of Stake is very fast in the transaction and more scalable.
Proof of work makes higher security by its high cost of hardware and mining sources.	Proof of Stake makes its security foolproof by its impossible, no one used to own more than half of the coin in the blockchain.
Proof of work gives a reward in the form of a new coin in the case of mining.	Proof of Stake does not give any kind of reward like Proof of Work as only the validation fee is received by the validator.

Advantages & Disadvantages of PoW & PoS?

Advantages of Proof of Work.

• The basic benefit of Proof of work is it gives or offers block rewards and other benefits to its miners. Such as a particular percentage of mining costs and fees.

• Proof of Work verify of transaction without any identification of the personnel involved in the transaction.

• Proof of work makes its security more perfect by its more expensive hardware. It depends on the knowledge of solving algorithms.

• Proof of Work makes its blockchain very difficult and complicated from the attacks.

Disadvantages of Proof of Work.

• The Proof of Work requires more energy for consumption thus escalating more money and make bad effect on the environment.

• Proof of Work results in long-term reliance on mining operations even though the newly produced digital funds continue to participate in the crypto market.

• Blockchain reward's a new coin that increases the supply of coins in the market of blockchain.

Advantages of Proof of Stake

• Proof of Stake requires less energy for consumption as compared to PoW so it make less effect on the environment. Also, require less money for energy.

• Proof of Stake transactions is very fast and offer a stable mechanism.

• Proof of Stake does not require any kind of hardware. So, it is inexpensive and reduces cost as compared to PoW.

• Proof of Stake gives really good benefits and rewards to miners.

Disadvantages of Proof of Stake.

• Proof of Stake’s evidence raises the foundation of a decentralized network, which attempts to seriously damage the core of the cryptocurrency system.

• PoS is locally located and relatively secure, so it can be vulnerable to low-quality attacks and thus cause damage to users' investments.

• It is impossible to hold and sell your coin and even a stake has a time that you cannot withdraw from until this time is over.

Which one is better in scaling capacity? Examples?

Measurement is the ability of a method to increase the amount of work that can be guaranteed per minute. This allows the block to take more transactions if the transaction value increases.

After reviewing the meaning, the differences, the advantages and disadvantages of both the proof of work and the evidence of the stake, we see a point that restores the fact that the evidence of the stake is better in estimation as there is a way to offer flexibility over time. and transaction speed. Stack proof is, therefore, better for measuring volume.

• Example PoS
  Some cryptocurrency uses stack proof instead of PoW using even the first bit of Cryptocurrency bitcoins while others move to PoS from PoW e.g Ethereum.

Ethereum

Evidence of the Stake concept, in that effort, has been focused on the development of Ethereum especially since the beginning of phase 2 development. For example, Ethereum users need to invest 32 Eths in order to be able to verify transactions, as they are improperly selected, and to verify and manage the blocks under their care.

Conclusion

Proof of work and proof of stake has provided blockchain technology to be able to fulfill its many attributes that make Cryptocurrency stand out in our local currency. Proof of work has seemed good but the issue of the use of force has become a troubling thought which makes the new blockchain provide evidence of a stakeholder as their way of agreeing.

Thank you, Professor, @sapwood & @dilchamo