Different types of Consensus Mechanism - Steemit Crypto Academy Season 4 - Homework Post for Task 6.

(1) What is the difference between PoW and PoS? Advantages and Disadvantages? Which one is better in scaling Capacity? Examples?

What is the difference between PoW and PoS?
Before I answer this question, I would love to talk briefly about the two consensus mechanisms.

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PoW which means Proof-of-Work is an agreement process that involves so much work in finding solution to complicated mathematical riddle, the operators are entrusted to authenticate the deal, document them on the logbook which is now incorporated in the blockchain. This mechanism was created to be used for the validation of Bitcoin transactions by the founder of Bitcoin, SatoshiNakamoto .
In this mechanism, when a transaction is performed into the blockchain, the miners in the system would have to solve a puzzle in order to verify the transaction so it can be confirmed.
In PoW, the choosing of miners is done in an irregular manner. It also guarantees a good level of dispersal but restricts the dimensions of measurement ability and ineffective strength.

For PoS which means Proof-of-Stake as a consensus mechanism to develop on the flaws of PoS. The inventor/developer are selected from the perspective of a specified support, that is to say, the larger the number of support , the greater the possibility for avalidator to get a block validated.
Ethereum is the most popular cryptocurrency project built on this mechanism are Stratus, Universa, OmiseGo, PIVX.

The difference includes;

** Advantages and Disadvantages of PoW and PoS**

Advantages of PoW

• Miners who work on this consensus mechanism are paid awesomely with Bitcoin. Bitcoin has much value therefore its value is usually high when these miners convert their rewards to fiat currencies.
• Miners are chosen randomly or in an irregular manner giving every minner an opportunity to work and earn.
• Miners and nodes reach agreement as all of them work in chain
• It has a strong security system.
  *It is not centralized in operation.

Disadvantages of PoW

• It involves complicated mathematical puzzle that is not easily solved.
• It takes a lot of time to validate transactions.
• It cost so much to use for blockchain operations.
• It uses high power gadgets and electricity.

Advantages of PoS

• It has the ability to process transactions in few minutes.
• It cost less to use as it does not fully rely on electricity.
• It is very fast as it takes just few seconds to process transactions.

Disadvantages of PoS

• Miners validate transactions by determining the miner through staking. This doesn't give opportunity for every minner to validate transactions
• The security level is low.
  *Its mode of operation is baseds centralized systems

Which one is better in scaling Capacity?

Proof of Stake as a consensus mechanism was developed because the traditional consensus mechanism upon which Bitcoin was built was very slow in validating transactions. Many other consensus mechanisms have come up as after the development of PoS and PoW to improve on their flaws. Some of these are Proof of Burn, Proof of Brain, Proof of History, etc. All these were created because of the scalability and cost of transactions.

Between PoW and PoS, the Proof of Stake consensus mechanism has a better scaling capacity because it can validate transactions in split seconds. Transactions are validated on time, once verified, they are confirmed compared to the long time it takes for PoW to confirm transactions.

I look forward to corrections from my various professors to be made in my next task.

Cc:
@sapwood