Member-only story
PoS vs. PoW: Which Blockchain Consensus Mechanism is Better?
Cryptocurrencies are built on the foundation of blockchain technology. One of the most crucial aspects of blockchain technology is the consensus mechanism, which refers to the process by which a distributed network of nodes agrees on the state of the blockchain. The blockchain has two primary types of consensus mechanisms: Proof of Work (PoW) and Proof of Stake (PoS).
This blog post will look closely at PoW and PoS, compare their strengths and weaknesses, and discuss which consensus mechanism is better for blockchain.
PoW vs. PoS: The Basics
Proof of Work is the original consensus mechanism used by Bitcoin and several other early cryptocurrencies. PoW requires miners to solve a complex mathematical problem to add a new block to the blockchain. The miner who solves the problem first is rewarded with newly minted coins and transaction fees.
Proof of Stake is a newer consensus mechanism that has recently gained popularity. PoS works by having validators “stake” their coins as collateral to validate transactions and create new blocks. Validators are chosen based on the number of coins they have staked, and the likelihood of being selected as a validator is proportional to the number of coins staked.
