Today i am going to complete the Home Work Task 6 of Season 5 , and task is Related to "Consensus Mechanisms" given by the Professor @sapwood.
I would like to thanks Prof @sapwood for this Course which helped me to develop the understanding of Different Types of Consensus Mechanisms. and its Functionality.

Today i am very excited to attempt the Third Homework Task, given by Crypto-Professor @sapwood And during the preparation of this task i have learned many new concepts and new things about Algorithm and Mechanism of Transactions.

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Before starting the task we needed to know about that what is consensus Mechanism in BlockChain. As the word consensus meaning the general agreement of stake holders on a specific point, as in case of Crypto world it relates with the transactions Records and mining of new tokens which added into BlockChain.

In the Decentralize system there are multiple nodes of system attached to network which have same information spread over the nodes about BlockChain. This is because of security and safety purpose and to avoid the central control. And this is also because to make sure secured and verified transactions.

A Consensus Mechanism is a method by which all the nodes of the network of BlockChain agree on a provided distributed information of ledger or transactions.

Proof of Work PoW:

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POW is consensus mechanism in BlockChain which is used by the peer nodes to verify the transaction log, and this information is recorded in block by a Hash value which is easy to track and revert afterward.

First time in 1993 the idea of POW was given by the Cynthia Dwork who told about the idea in actual what is it? And then in 2008 Satoshi Nakamoto applied this idea by creating the Bit Coin and from that time to now this mechanism is using in many currencies.

In the Decentralize system of BlockChain there is concept of pool system which is Unconfirmed and Confirmed Pool, whenever a transaction have initiated it will goes into the Unconfirmed pool by default, then all the Nodes present on the blockchain network are supposed to verify and validate the transaction by solving the puzzles and after the validation this transaction add into the block with timestamp.

POW mechanism requires high level computing and power to solve the complex puzzle and mathematics problems to mine the next block generation of Currencies like Bitcoin.

Now technology is entering into new era of advancement where more powerful processors and machines are there to perform the mining operations by using POW consensus algorithm. Now miners are creating the new blocks and earning rewards for each block.

Proof of Stake PoS:

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The PoS is also consensus algorithm but this works different from PoW, this is very low cost, low energy consuming mechanism. In this Algorithm some Miners or Blockchain Nodes are responsible for the validity and verification of blocks transactions and they are assigned the responsibility to maintain the public ledger.

In the PoS like its mean one who have more stake on network is more responsible for the consensus, means one node which have more power in terms of Token and Investment on Blockchain will have more power on the ecosystem.

Unlike the PoW in which every miner have equal rights to add the blocks in Blockchain by mining or we can say by solving the puzzles and math problems, in the PoS one who have more stake is more responsible, here we can say the system of capitalism is involved but in the positive manners we can say if one have more stake over network will never make false validation and fraudulent verification.

Differences between PoW and PoS

Advantages of PoW

1. It is Decentralize System which is not controlled by some specific nodes.
2. It is more Secure and Reliable Mechanism to Trust on.
3. An Old mechanism which is tested and implemented for years.
4. In this Mechanism after creation of Block one will rewarded back by system.

Disadvantages of PoW

1. The main Disadvantage is finances to operate the System, its equipment’s is too costly to buy and install.
2. In some regions around the globe there are restrictions to install and mine the blocks due to power issues.
3. In this mechanism creation of blocks take 10 mints. Which is huge time.
4. The main risk in the PoW is 51% risk which means if you have more than 51% nodes power on the blockchain then you can attack the system.

Advantages of PoS

1. This mechanism is very fast and easy to understand.
2. Hardware cost is minimal and you just need good internet to operate the PoS.
3. If you have more power and more stake on the Blockchain network you can be selected as validator easily.
4. Due to Less energy consumption this is not banned around the globe in different regions.

Disadvantages of PoS

1. This is centralize mechanism which is control by some high stake nodes over network.
2. There are chance to be fraudulent and fake validations of blocks.
3. There is chance to hack the system by hackers.
4. Token mining depends on the high stake validators.

Capacity Scaling is associated with the mining of new blocks and validation of transactions on the Blockchain.

If we see the PoW then we came to know that it will take almost 10 mints to mine the Bitcoin block which is huge time to consume the power and a lot of energy. So this is not better option with respect to capacity scaling.

If we see the Performance of PoS with respect to the mining of Blocks and validations of Transactions then it took seconds and consume less power and energy. So this much better for capacity scaling.

1. Bitcoin
This is main leading coin on the board which is also called gold coin is using the PoW mechanism which is more expensive and energy consuming process to mine its block.

On the other hand Coins which are using PoS and also better for scalable capacity are

2. Ethereum
This is on second number on table after Bitcoin, and this coin have changed the mechanism of transaction verification and validation from PoW to PoS in its new update.

3. Tezos
This coin ranked on 10th positions in market, which is also using PoS algorithm and now people are showing interest in this coin.

4. Tron
This coin we also earn from the SteemIt plat form in reward this is also using the PoS mechanism to verify and validate the transactions.

After all the details and analysis we came to know that both mechanisms have some positive and negative points. PoW is best with respect to the responsibility, Decentralization and high security and on the other hand PoS is famous for the less time and energy consumption. But now the major issue is power and time, and PoS is more reliable and fast to use, but there is need of better security and modifications in operation is required to maintain the Crypto ecosystem.

I hope I would get some good remarks from professor on my effort.

Note : All the Images that, i have used have been citied and source have given with every image.

Cc :
Professor:
@sapwood