Proof of Work vs Proof of Stake: Basic Mining Guide - Deepstash

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Proof of Work vs Proof of Stake: Basic Mining Guide

blockgeeks.com

The Proof of work concept existed even before bitcoin , but Satoshi Nakamoto applied this technique to the digital currency revolutionizing the way traditional transactions are set.

In fact, PoW idea was origi...

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What’s trustless and distributed consensus?

A trustless and distributed consensus system means that if you want to send and/or receive money from someone you don’t need to trust in third-party services.

When you use traditional methods of payment, you need to trust in a third party to set your transaction (e.g. Visa, Mastercard, PayP...

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Going deeper, proof of work is a requirement to define an expensive computer calculation, also called mining, that needs to be performed in order to create a new group of trustless transactions (the so-called block) on a distr...

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Proof of stake will make the consensus mechanism completely virtual. While the overall process remains the same as proof of work (POW), the method of reaching the end goal is entirely different. In POW, the miners solve cryptographically hard puzzles by using their computational resources.

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In a distributed consensus-based on the proof of Work, miners need a lot of energy. One Bitcoin transaction required the same amount of electricity as powering 1.57 American households for one day

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Proof of Work vs Proof of Stake: Conclusion

Thanks to a PoS system validators do not have to use their computing power because the only factors that influence their chances are the total number of their own coins and the current complexity of the network.

So this possible future switch from PoW to PoS may provide the following benefi...

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