LIVEHi Binance Square !
Kindly check my pinned post to read the first #EducationalPost
Yesterday we talk about Consensus Mechanism
where i already mention about how Proof of Work in $BTC works.
Today, let's dive in to other Consensus Mechanism in our Web3 Realm Right Now
- Proof Of Stake (PoS)
This type of consensus is used widely in ethereum based blockchain. Validators are required to hold and stake token for the privilege of being chosen as a validator.
The odds rely on the token stake size from each validator.
Imagine the chain "owner" having some super computational power computer (not one but not as much as PoW) this reduce the (1)energy costs, (2)Increase security and offering community control.
in the simplest terms. PoW investment is an expensive super computer, while in PoS you need to hold or stake some specific amount of token. in $ETH for example you need at least 32 ETH to be able to run node and consider as a validator.
The reward for validators is gasfee, while miners in bitcoin is given a block reward in form of #BTC itself.
If you heard about halving, then it's about the amount of BTC reward for the miners. Reduced by 50% in every cycle. Where the maximum supply of BTC is fixed at 21M Coins. That's why each halving make BTC Prices surges. Logically speaking, miners got less coin means that a single txn validating cost is also higher.
The increase price of BTC compensate the reduced reward for the miners.
That's for today.
No need to rush if you wanna learn a lot about Web3 and Blockchain.
I'll try to write educational content each and every day for you. I know it's difficult to understand. But, bear with me because i can tell that if you learn the basic. The rest gonna be easier for you.
Always, CMIIW and DYOR.
#WAGMI guys !
LIVE