Consensus mechanisms are a crucial aspect of blockchain technology, allowing us at the network to agree on a single version of blockchain without just depending on the majority vote. There are several consensus mechanisms used in blockchains, each with its own strengths and weaknesses. In this answer, two prominent consensus algorithms.
Work Proof (Pow)
Pow is the most widely used consensus algorithm in bitcoin and other cryptocurrencies like Ethereum. Here is a simplified overview:
1.
- The solution is verified by the network :
- Mineiro is rewarded with new cryptocurrency blocks :
Characteristics -pow Chamber:
- High Energy Consumption: Miners Require Significant Computational Energy, which leads to High Electricity Costs.
- Inergueiro: Pow consensus has been criticized for its environal impact due to the energy needs to serve complex mathematical puzzles.
- Centralized:
stake proof (puzzle)
Puzzle, also knows of participation “, is an alternative consensus algorithm that has gained popularity in recent years. Here is how it works:
- **
2.
- Mineiro is chosen by Random Selection :
Characteristics -have puzzle:
- Lower Energy Consumption: Puzzle Requires A Significantly Computational Power Than Pow, Making It More Environmentally Friendly.
- Decentralized: the network is decentralized and no single entity controls the result.
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Comparison Between Pow and Post
|
Resource |
Pow (Bitcoin)
|
Puzzle (Ethereum) |
| — | — | — |
| Energy Consumption Tall | Low |
| Environmental Impact | Criticized | Not so significant |
| Centralization | Centralized Mining Pool | Decentralized Network |
| Justice Random Selection of Miners Random selection, but with more influence for Great Players |
Networks, Environmental Impact, Environmental Impact, Centralization and Justice. Pow is still widely used in Bitcoin, but its use has decreased as other cryptocurrencies like Ethereum adopted puzzle. As