Posts

What you should understand by proof of work and proof of stake consensus mechanism

avatar of @tfame3865
25
@tfame3865
·
·
0 views
·
3 min read

I decided to talk about the word proof of stake and proof of work today simply because of how it relates to consensus in some format. If you have anybody that is struggling to decode some basic terms in the cryptocurrency ecosystem please help that person by referring that person to my blog post. I am putting a lot of content in place that will helps to explain different aspect that makes the cryptocurrency ecosystem and the blockchain at large what it is today. We all knows that ever since the great Nakamoto Satoshi Kon created the blockchain into limelight, we have saw tremendous use case in the cryptocurrency ecosystem. In all I do, my main aim is to make sure that I drive the cryptocurrency ecosystem to mainstream base on my own work rate. I believe that if we can do this individually, we will be able to drive the cryptocurrency ecosystem to the state and stage that we all wanted. Mind you, just like what I am trying to portray, this work should not be left in the hands of just one man, we all should come out into getting this achieved. We all should knows that when it comes to the cryptocurrency ecosystem and the blockchain at large, being united is all that we wanted and that matters. Being united and love will give us the right avenue to be able to drive the cryptocurrency ecosystem and the blockchain at large to the right mindset. Cryptocurrency is everything, that everything can be birthed into reality if only love and the unity that I am talking about is being worked on.

Credit

Knowing full well that the grass root that we are enjoying today is being birthed in place by the great Nakamoto Satoshi, that shows that we should give him that regard all the time. We all knows that coming up with such an amazing project that has taken the entire world by storm is not that easy but despite that, we all should be seeing ourselves doing amazingly well especially when it deals and relates to the cryptocurrency ecosystem and the blockchain at large. If you have been following up with my post you will see and discover that my post is here to guide and to ensure that we all are being educated about the cryptocurrency ecosystem and the blockchain at large. Just yesterday I talked about consensus and if you go through that post you will see that while I was talking about consensus, I made mentioned of it that proof of work and proof of stake is the two consensus that is generally known in the cryptocurrency ecosystem out there. With that being known, the big question at hand right now is what is proof of work (Pow) and proof of stake (Pos).

What is proof of work (PoW)

As the name implies proof of work ensures that work is being carried out in that blockchain before reward is being pushed out. If you are conversant about cryptocurrency mining you will understand proof of work principles or mechanism. During mining you will only be among those that will share from the national cake if you are among those who took part in the working process by mining such cryptocurrency token almost all the time. The simplest principle of proof of work mechanism is that you must put or push in work in other for you to be able to earn. Cryptocurrency blockchain that operates the proof of work system is Bitcoin.

credit

You can read more about proof of work by clicking through this link

Credit

What is proof of stake (POs)

Proof of stake on the other hand doesn't requires you to carry out any work. In a proof of stake systement, all that is required of you to do is to put up your crypto token/coin up as collateral for a chance to earn more. The higher your stake i.e your investment in such blockchain, the more the reward you will be opened to. Cryptocurrency project like Ethereum, Cardano etc uses the proof of stake system. For more clarity, Proof of stake is a mechanism used to verify blockchain transactions. It differs from proof of work incentivizes honest behavior by rewarding those who put their crypto up as collateral for a chance to earn more.

You can read more about proof of stake (POS) by clicking on the below Link

Credit

Credit

I will end the post here, have a nice day.

Posted Using LeoFinance Alpha