Proof of Stake and how it is different from proof of work
Proof of Stake and how it is different from proof of work; in this article, we will describe the details of proof of work and proof of Stake. First, let us understand what proof of work is, even before you know proof of work. You must understand Blockchain technology and Bitcoin or Cryptocurrency. First, read our articles; links are available at the end of this article.
Proof of Work
While mining Bitcoin or other cryptocurrencies, they do mining are called Nodes, or we also call Miners. To understand proof of work, we take an example, we have 100 nodes, and they have the best computers they’re mining, and new blocks keep accumulating, and these miners store these blocks in the chain of coins mining in which they are working.
Proof of Stake and how it is different from proof of work; When someone wants to transact with bitcoin, the mathematical puzzle is given to all Miners. Who resolves the mathematical puzzle as soon as possible, so the reward is given to the topper. That’s why we talked about the best computer above.
Proof of Stake and how it is different from proof of work; And now there will be as many miners in this relevant blockchain if 50% of Nodes or Miners confirm the transaction; this block is assembled, and the whole process we just described is proof of work. All the miners that participate in this process, they use their computers, and they use particular types of graphic cards.
In proof of work, all the miners get a block and who will be the topper after solving the mathematical puzzle. The consensus is that for 51% of the miners, the transaction fee will be paid to the miner who will first solve the mathematical puzzle, and after verifying, the block is added to the blockchain of the respective project.
In proof of stake from all the validators, the blockchain chooses the one validator who staking the maximum coins, and he gets that block. The consensus is that for 51% of the validators, the transaction fee will be paid to the validator. And after verifying, the block is added to the blockchain of the respective project.
Proof of Stake and how it is different from proof of work; Since the complicated mathematical puzzle solves heavy types of computers and obviously uses more electricity to run the heavy machine. When the mathematical puzzle is given to solve, the miners, who translate it first, will get a reward, and the efforts of all other miners are lost and waiting for the next transaction.
Mining Pool
Proof of Stake and how it is different from proof of work; So to find a solution to this problem, the Miners coined their own term called Mining Pool, in which the miners together make a pool of their own and solve the mathematical puzzle and divide the reward they get. But it becomes a centralized system in which Mining Pool is monopolized.
Proof of Stake
When miners cannot solve the mathematical puzzle quickly, all their resources are wasted, leading to the concept of the proof of Stake. In Proof of Stack, Mines are called Validators. Most of all, when these Validators participate in Staking and want to earn some money, in return, they will first deposit coins as security to the relevant blockchain.
Proof of Stake and how it is different from proof of work; So that if you have to do any transactions in a situation, they will send this transaction only to one computer, and if it did not make a mistake and completed the transaction correctly; so he’ll get the reward. One of the most significant advantages of Proof of Stack is that you can do it from a standard computer. For this, the use of electricity is also not much required.
Proof of Stake
We want a standard computer.
Required a mining graph card.
There is no competition here. A computer will get the same transaction.
There is no threat of monopoly here.
The cost of electricity is negligible, but the reward is also low.
And here, those who complete transactions are called Validators.
Proof of Work
We want a heavy computer.
Required a mining graph card.
Miners will compete to solve the mathematical puzzle.
Mining Pool facility. Due to this, there is a risk of monopoly.
The cost of electricity is high, but the reward is also high.
Here those who complete transactions are called miners.
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