Proof Of Work vs Proof Of Stake

Proof of Stake or Proof of Work, which is the best method for consensus, within a network that relies on the integrity of its validators?

Depending who you speak to your answer will be very different. And while they both serve a fantastic purpose, which consensus algorithm is better?

Proof of Work

Proof of Work (PoW) is the algorithm that many cryptocurrencies, such as Bitcoin, Litecoin and Ethereum uses to power its transactions.

It takes a lot of computing power, and ultimately uses up a lot of electricity, which many see as a major flaw for the PoW algorithms.

The idea was first introduced in 1993 to combat spam emails, but the technique went largely unused until Satoshi Nakamoto created Bitcoin in 2009.

Satoshi realized that this mechanism could be used to reach consensus between many nodes on a network, and so he introduced it as a way to secure the Bitcoin blockchain.

It started off with just him on his computer, but then it grew to a network of CPUs, and then GPUs, and now we have ASICs mining rigs that are highly powerful machines designed specifically for mining a certain cryptocurrency.

It has now got to the point where huge mining farms are being created and installed with thousands of these highly powered ASICs mining rigs, all done so these companies can compete for the rights to win the cryptocurrencies that are paid out as a reward to the miners. Read More at Ethereum Nexus

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