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      "author": "stan015",
      "permlink": "pow-and-pos-consensus-mechanisms-steemit-crypto-academy-season-5-homework-post-for-task-6-by-stan015",
      "title": "PoW & PoS Consensus Mechanisms - Steemit Crypto Academy Season 5 - Homework Post for Task 6 [By @stan015]",
      "body": "<div class=text-justify>\n\n![image.png](https://cdn.steemitimages.com/DQmTjXvshdghBcfvdnghDvzBKwMPWXKpqD7BahqU1tqKGus/image.png)\n<sup>[source](https://steemitimages.com/640x0/https://cdn.steemitimages.com/DQmUqCPsm2DzbhcXMGRyEeWa8FtUnTDCrNRWrBkd3eGP6qp/005-6.png)</sup>\n\n![post line.png](https://cdn.steemitimages.com/DQmQoNMgMxXazw9bS9A5RLyqMvyTgCDF6nXgQVoVWEtcqcf/post%20line.png)\n<center>INTRODUCTION</center>\n![post line.png](https://cdn.steemitimages.com/DQmQoNMgMxXazw9bS9A5RLyqMvyTgCDF6nXgQVoVWEtcqcf/post%20line.png)\nGreetings everyone!👋 In this article, I shall discus deeply on Pow and PoS Consensus Mechanisms. This is in regards to the [homework post for task 6](https://steemit.com/hive-108451/@sapwood/crypto-academy-season-4-beginners-course-task-6-different-types-of-consensus-mechanisms) by professor @sapwood. \nThis article shall focus on answering the below questions and also explaining more about PoW and PoS;\n>What is the difference between PoW & PoS? Advantages & Disadvantages? Which one is better in scaling Capacity? Examples?\n\n![post line.png](https://cdn.steemitimages.com/DQmQoNMgMxXazw9bS9A5RLyqMvyTgCDF6nXgQVoVWEtcqcf/post%20line.png)\n<center>DEFINING THE KEY WORDS/SENTENCES</center>\n![post line.png](https://cdn.steemitimages.com/DQmQoNMgMxXazw9bS9A5RLyqMvyTgCDF6nXgQVoVWEtcqcf/post%20line.png)\n*What is **Consensus Mechanism***?\nAssuming in a cycle of five friends, if all the five friends agrees on a single topic, then we can say that consensus is archieved. But in a case where all five did not agree on a single topic, we can then say that the topic with the highest percentage (lets say 51% and above) would be satisfied. \nIn cryptocurrency, *consensus mechanism*, which is also known as consensus protocol or consensus algorithm is a *fault-tolerant* mechanism that is used in blockchain to settle on an agreement on the truthfulness or state of a single network among distributed nodes. This mechanism allows new block to be added to a blockchain with respect to the truthfulness and security of the block.\n\n*What is **PoW***?\nPoW, which is an accronym of Proof-of-Work, is a type of consensus mechanism that is widely used in cryptocurrency mining for validating transactions and mining new tokens/blocks by solving complex mathematical puzzles. \n\n*What is **PoS***? \nThis is a type of consensus mechanism that requires the members involved to stake their coins in order to have the right to check new blocks of transaction and add them to the blockchain. Proof-of-Stake works with respect to the proportion of the quantity of holdings of the members involved.  A member with higher proportion of holdings will have a higher chance of being selected as a validator.\n\n![post line.png](https://cdn.steemitimages.com/DQmQoNMgMxXazw9bS9A5RLyqMvyTgCDF6nXgQVoVWEtcqcf/post%20line.png)\n<center>WHAT IS THE DIFFERENCE BETWEEN PoW AND PoS?</center>\n![post line.png](https://cdn.steemitimages.com/DQmQoNMgMxXazw9bS9A5RLyqMvyTgCDF6nXgQVoVWEtcqcf/post%20line.png)\nThe major difference between PoW and PoS is that *Proof-of-Work* uses a competitive method that requires miners to solve mathematical puzzle in order to be able to add new blocks of transactions to the blockchain, while in *Proof-of-Stake*, miners are selected randomly to validate new block transactions based on the proportion of the quantity of their holding/stake.\nPoS is less energy-intensive compared to PoW.\n\n![post line.png](https://cdn.steemitimages.com/DQmQoNMgMxXazw9bS9A5RLyqMvyTgCDF6nXgQVoVWEtcqcf/post%20line.png)\n<center>ADVANTAGES AND DISADVANTAGES OF PoW</center>\n![post line.png](https://cdn.steemitimages.com/DQmQoNMgMxXazw9bS9A5RLyqMvyTgCDF6nXgQVoVWEtcqcf/post%20line.png)\n|ADVANTAGES | DISAVANTAGES|\n------------------- | ---------------------\nhigh security | high energy consumption\ncryto rewards can be earn by miners | It is expensive to operatein terms of equiptments\nIt is a better decentralized way of verifying transactions | It has slow transaction speed which makes it inefficient\ntrust and legitimacy is guaranteed | expensive transaction fee\n![post line.png](https://cdn.steemitimages.com/DQmQoNMgMxXazw9bS9A5RLyqMvyTgCDF6nXgQVoVWEtcqcf/post%20line.png)\n<center>ADVANTAGES AND DISADVANTAGES OF PoS</center>\n![post line.png](https://cdn.steemitimages.com/DQmQoNMgMxXazw9bS9A5RLyqMvyTgCDF6nXgQVoVWEtcqcf/post%20line.png)\n|ADVANTAGES | DISAVANTAGES|\n---------------------- | ---------------------\nLow energy consumption | It lacks proof of sustainability\nIt provides fast transactoin | security is not as strong as that of PoW\nIt provides inexpensive transaction fee | It requires more funding in order to stand a high chance of being selected as a validator\nIt does not require special equipments | low reward from mining\n\n![post line.png](https://cdn.steemitimages.com/DQmQoNMgMxXazw9bS9A5RLyqMvyTgCDF6nXgQVoVWEtcqcf/post%20line.png)\n<center>BETWEEN PoW AND PoS, WHICH IS BETTER IS SCALING CAPACITY?</center>\n![post line.png](https://cdn.steemitimages.com/DQmQoNMgMxXazw9bS9A5RLyqMvyTgCDF6nXgQVoVWEtcqcf/post%20line.png)\nMany cryptocurrency are being migrated to PoS because PoS is better perceived in terms of scalability compared to PoW. PoS solved the two main problems of scalability, which are energy consumption and transaction speed. PoS consumes low energy and it is fast in transaction. Other considerations includes lesser fees of transaction and inexpensive equipments needed for PoS.\n\n![post line.png](https://cdn.steemitimages.com/DQmQoNMgMxXazw9bS9A5RLyqMvyTgCDF6nXgQVoVWEtcqcf/post%20line.png)\n<center>EXAMPLES OF CRYPTOCURRENCY USING EITHER PoW OR PoS</center>\n![post line.png](https://cdn.steemitimages.com/DQmQoNMgMxXazw9bS9A5RLyqMvyTgCDF6nXgQVoVWEtcqcf/post%20line.png)\nPoW | PoS\n------- | ---------\nBitcoin | BNB\nEtherium | Cardano (ADA)\nLitecoin |Polkadot (DOT)\nDogecoin | Solana\n\n![Capture p2.PNG](https://cdn.steemitimages.com/DQmYk1SJs5noHPGoH1x4HE2FLCBRb4dySfoSu8Mi4uBgHrQ/Capture%20p2.PNG)\n<sup>[screenshot](https://cryptoslate.com/cryptos/proof-of-work/)</sup>\n![Capture p1.PNG](https://cdn.steemitimages.com/DQmYpaFaM9B4Wprk1xJbVvuS8Vz5AQWn5mNM1Pd2JvSrx6g/Capture%20p1.PNG)\n<sup>[screenshot](https://cryptoslate.com/cryptos/proof-of-stake/)</sup>\n![post line.png](https://cdn.steemitimages.com/DQmQoNMgMxXazw9bS9A5RLyqMvyTgCDF6nXgQVoVWEtcqcf/post%20line.png)\n<center>CONCLUSION</center>\n![post line.png](https://cdn.steemitimages.com/DQmQoNMgMxXazw9bS9A5RLyqMvyTgCDF6nXgQVoVWEtcqcf/post%20line.png)\nMany thanks to professor @sapwood for the wonderful [lecture](https://steemit.com/hive-108451/@sapwood/crypto-academy-season-4-beginners-course-task-6-different-types-of-consensus-mechanisms). Understanding the consensus mechanism is so important in the crypto world and I am happy to have acquired new knewlege from the lectured, making researches in order to complete this wonderful task was indeed helpful and I hope my readers understands PoW and PoS, these two are the most popular of all the types of consensus mechanisms, others include Delegated Proof of Stake(DPOS), Practical Byzantine Fault Tolerance (PBFT) and Directed Acyclic Graph (DAG). \n\nhttps://steemit.com/hive-172186/@stan015/my-introductory-post-to-this-great-community\n\n![post line.png](https://cdn.steemitimages.com/DQmQoNMgMxXazw9bS9A5RLyqMvyTgCDF6nXgQVoVWEtcqcf/post%20line.png)\n\n</div>",
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