Steemit crypto Academy season 5 task 6 of the introductory courses || Different types of consensus mechanism by @jacksonmark1

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Introduction

Hi everyone, I trust we’re all doing well today, it’s another day for me to submit my task-6 of the steemit crypto academy season 5 introductory courses. This assignment is a privilege that I’ve so far learnt from and now I’m giving my answers to questions number 1.

Questions

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

Blockchain consensus mechanism

In block chain technology structures, there is a necessity that there is a productive linkage between all the different nodes and also the chains links that makes an information received verified, securing the data handled does not by any means go through alteration till final process, also making sure that it maintains concomitance with all ledger, thereby verifying and accepting final stage of security to the operations.

For safeguarding of information regarding the nodes involved in transfers, it requires consensus between the nodes. For the fact that data are being kept decentralized in thousands of independent or free blocks entwined together, it requires all the nodes to have the identical scan of the copy.

Consensus mechanism are provided with calculation protocols that has an algorithm that is scrutinized by "miners", through the application of "Hash" Units for certification and verification of information of a chain.

Algorithm in this case is the PoW.

In this structure of consensus mechanism, it ensures compound calculations and mathematical numbers that fresh new blocks is being certified and verified per operations prepared by a user that provides the system the tool to perform the calculations. It involves time and energy to carry out this.

The nodes circulates the supported data to the remaining chain which verifies and adopts it if the data shared is correct and then creating a verified and valid block.

What is the Difference between PoW and PoS

Proof-of-work (PoW).

The proof of work consensus mechanism needs a lot of computerized energy and time to Solve the compound mathematical perplex, the miners are to make a validated transaction record on the public ledger which now becomes a member in the Chain of Blocks.

Source

Firstly, whenever a blockchain transaction is being carried out, it goes directly to the unconfirmed pool after which the miners are assigned to workout the cryptographic perplex for verification and validation of transaction. Each validated and verified transactions are instantly added to the Block With a timestamp.

If should in case the 2 transaction was taken at sane time from the unconfirmed pool, the first to be confirmed is made valid.

Each network has a particular block producing time. Bitcoin (BTC) uses 10 minutes while Litecoin goes with 2 minutes 30 seconds, The two Blocks uses PoW mechanism to meet a consensus. Selection of miners is random in the PoW mechanism.

Provision of high degree of decentralization is ensured in PoW and it has a scaling capacity limit and also energy inefficient.

Proof-of-stake (PoS)

Source

PoS is preordained perspective, the block creator and validator is chosen upon the determined stake and in percentage to the stake.

It therefore means the higher the stake amount, the higher the chance of becoming the block validator. PoS is energy efficient and doesn't require a mining rig. It helps the demand price of the token because it locks a certain percentage.

The keys to reach consensus in PoS are Economic stake and stimulus mechanism

The PoS model stakeholders are likely to earn better rewards And also energy efficient, but its centralized and has a low level of security than PoW.

Few blocks have announced their soon switching from PoW to PoS, one of which is Etheruen (ETH).

Advantages & Disadvantages of PoW

Advantages

• New financial units are being developed, in verification of the adequacy of the current block, and consensus validation between different nodes in the blockchain is being done.

• Mathematical algorithms are being solved and guarantee the mobility of the data prepared by the nodes of the block chain, verified block obtain profits from the assets.

• To be rewarded and given access to create a new block with the crypto currency established, it requires possession of the hard ware required for its mining.

• Security is ensured in the related chain

• The consensus established between the decentralized nodes covers any data that is not in agreement with the rest of the nodes, This data does not change to any level since there is numerous blocks that contains the sign ensuring their stability in the chain.
  

Disadvantages

• It requires high energy usage
• Expensive transaction fees and slow transaction speed.
• It requires expensive equipments for mining.
  

Advantages of PoS

• Consensus protocol of Blockchain is attained digitally.
• Anyone user holding a coin in the wallet can participate.
• Staked tokens generates rewards.
• Affordable and user friendly.
• Does not require heavy mining operations because just staking a token does everything.

Disavdvantages

• If hackers obtain about 51% of the cryptocurrency in the system, its easily attacked.
• Coin hoarding is encouraged, you need more coins for more power.

which one is better in scaling capacity

Scalability needs a capable system to handle rising amount of work. It needs more effort to improve the system to align with the growing workload. Blockchain needs a capable network to encourage larger number of occurrences. poor scale in a blockchain brings about failed transactions.

from the above statements considering PoW and PoS, it is well cleared that PoS has a better scaling capacity. PoW mechanism has a hard modifying standard of usage.

PoS gives a high consistency and speed and also gives assurance in different Infusions to the bitcoin scalabilty problems. Slow speed and energy consumptions related to PoW is handled in PoS.

Examples of different coins using the PoS mechanism

• Tezos (XTS)
• Cosmos (ATOM)
• Solana (SOL)
• Cardano (ADA)
• Polkadot (DOT)
• VeChain (VET)

Conclusion

So far, this task have added more knowledge to me about crypto currency, i am happy for this Academy and the professors for their support and help. Thanks to the Steemit Crypto Academy supporters and dream bearers.