Ivan on Tech Academy provides latest insights and reports about the blockchain industry.
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.
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:
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.
Quite like Bitcoin, Ethereum also uses a proof-of-work (PoW) consensus protocol. The core principle of PoW works like this: