Blockchain and Crypto Blog

Ivan on Tech Academy provides latest insights and reports about the blockchain industry.

proof of stake proof of work proof of work vs proof of stake staking

Proof of Work vs Proof of Stake: A Detailed Comparison

Written By Ivan on Tech

Aug 14, 2020

The “proof of work vs proof of stake” debate has been raging for a long time. Many modern projects have opted from proof of stake (POS) over the more traditional proof of work (POW). Your old school currencies like Bitcoin, Zcash, and Ethereum (pre 2.0) were all based on POW. So, in this article, let’s learn more about POW and POS. But first, let’s look into what we mean by consensus algorithms.

Proof of work vs proof of stake - What are consensus algorithms?

Consensus is a method with which a group can reach an agreement dynamically without causing any discord in the group. As such, it's a lot more positive than simple voting, which doesn’t care about the minority's feelings. A mechanism that allows you to reach consensus is known as a “consensus algorithm.” There six rules that consensus algorithms must follow:

  • It should give a result.
  • It must create a spirit of collaboration.
  • The participants must put the interests of the group before...
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Breaking Down ETH 2.0 - Staking Explained

Written By Ivan on Tech

Jun 11, 2020

With ETH 2.0 just around the corner, now is a good time as any to look into one of the most critical updates it’s bringing along - proof-of-stake (PoS). In this article, we will look at why the current proof-of-work (PoW) system isn’t refined enough for future scalability needs and then see how eth 2.0 is looking to integrate PoS. 

What is Proof-of-Work?

Quite like Bitcoin, Ethereum also uses a proof-of-work (PoW) consensus protocol. The core principle of PoW works like this:

  • Specialized nodes in the network called “miners” own mining equipment called “ASICs.”
  • The miner takes up transactions from the mempool to form a block and then hashes its contents.
  • They then add a random value called “nonce” in the front of the hash and then hash the overall value again.
  • Now the miner will compare the value of the hash against the network difficulty. The difficulty is a metric decided upon by the network, which adjusts according to the ease...
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