Some newcomers to the blockchain industry are confused by the many abbreviations or abbreviations in blockchain technology. It's like going back to the days of school, when they were dominated by English words and felt terrified.
There is no way. Blockchain is a global topic and it is inevitable that there will be English professional terms.
Today, let’s explain what the three consensus mechanisms of PoW, PoS, and DPoS are. 🤔
1. Proof-of-Work
Proof of Work (PoW) As the name suggests, what you get is related to what you put in. The more you put in, the more you get. The proof of work mechanism uses the workload results to prove the contribution, and then determines the accounting rights and rewards based on the contribution.
This proof process relies on mathematical calculations by computers. It can be understood like this: everyone tries to solve the same problem, and whoever solves it first is responsible for keeping accounts and gets the corresponding reward, which is the digital currency generated by the network.
For example, in the Bitcoin network system, whoever solves the problem first will get Bitcoin as a reward.
Advantages of POW: The algorithm is simple and easy to implement. It requires huge cost to destroy the system, and it has certain security guarantees.
Disadvantages of POW: Computing power competition, waste of resources. Long transaction confirmation cycle, difficult to support high concurrent transactions.
Computers are powered by electricity, and when everyone uses computers to solve problems, it actually consumes a lot of electricity. For example, Bitcoin uses the PoW consensus mechanism, which consumes billions of dollars worth of electricity every year and has been criticized.
2、#POS (Proof-of-Stake) Proof of Stake Mechanism
Proof-of-Stake (PoS) is a mechanism that selects bookkeeping rights based on the amount and time of holding coins. In other words, the more coins one has in his wallet and the longer he holds them, the greater the probability that he will have the right to keep accounts. (The more you hold, the more you get)
Advantages of POS:
①No need to calculate, no waste of electricity.
② The cost of doing evil is high. If you want to attack the network, you must have 51% of the coin age, which is very difficult. Not only do you need a large number of coins, but you also need to hold them for a long enough time.
③Shortened the block generation time and confirmation time, and improved system efficiency.
Disadvantages of POS:
① The currency holding tends to be centralized, because the more coins you hold and the longer you hold them, the greater the distributed benefits will be, and the more coins you will get, making the currency too centralized;
② Liquidity deteriorates. If holders of coins receive income distribution, they will have no motivation to cash out. Instead, they will hoard coins and start earning money without doing anything, which will lead to poor liquidity of coins.
3、#DPoS Delegated Proof of Stake
The Delegated Proof of Stake (DPoS) mechanism is similar to a board of directors vote. Coin holders vote for a certain number of nodes to perform verification and bookkeeping on their behalf. If the selected nodes do not perform their duties, that is, they fail to generate blocks when it is their turn, then the network will select new blocks to replace them. From a certain perspective, DPOS can be understood as a multi-center system or weak centralization.
Advantages of DPoS: small number of accounting nodes, efficient collaboration, and high accounting efficiency.
Disadvantages of DPoS: The degree of decentralization is weakened, accounting is done by elected representatives, and there is a certain degree of centralized control.
Conclusion 🚩
The above is an interpretation of the three consensus mechanisms of blockchain: POW, POS, and DPOS
At present, the existing mainstream consensus mechanisms on the market have their own advantages and disadvantages, and there is no best or worst. With the continuous development of blockchain technology, the consensus mechanism will continue to be optimized, and the future is promising.
Thank you for watching and reading. If you think it’s okay, please [like, forward and comment]. See you next time👋
