Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: Dgjamisola on November 25, 2017, 08:50:06 PM
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Thank you very much for the answers to my questions ;D
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The difference between POW and POS
POW：(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 trust less transactions (the so-called block) on a distributed ledger called blockchain. mainly is based on computation power, it means you are as powerful as the number(and power) of your CPUs.
POS: (Proof of stake)
so another algorithm was developed that works completely different and makes you powerful as your stakes, in another word the amount of the coins that you earn is related to amount of stakes that you hold, for example, if you have 10% of a coin in your account, you would earn 10% of new coins that are created in future(the concept is simplified, there are more details in technical terms) because the probability of you signing next block would be related to your amount of stake. in this case you don't need to solve very hard mathematical challenges anymore which prevents wasting many resources like electricity, and also if someone wants to own more than 51% of the stakes to do the attack, he/she has to buy 51% of the stakes which is practically impossible because when he/she starts buying all the coins, the price would go to the moon and he/she won't be able to afford all that money.
Proof of stake first idea was suggested on the bitcointalk forum back in 2011, but the first digital currency to use this method was Peercoin in 2012, together with ShadowCash, Nxt, BlackCoin, NuShares/NuBits, Qora and Nav Coin.
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POS will be Good choiches
POW not easy understand for me
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I would personally choose POS because POW will need much more technical setup and rig if you decide to mine yourself, not to mention the cost!
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I'm not a technician of this stuff but in my opinion it is good to have a combination of both of them,
POS helps the community to avoid to much centralization of miners, POW helps to stabilize the blockchain network.
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POS to me, POW is not easy to understand.
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POS is much easier and only needs your computer working without the need of strong GPU or mining rigs
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Thanks for the clarification
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Both have their place in the crypto world. POS is much more efficient compared to POW in my opinion.
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The main advantage of Pow is that when a coin becomes less profitable, another coin can easily be mined.
With staking or a masternode, if the price falls, you simply find yourself blocked.
Secondly, it should not be underestimated that the value of the hardware remains stable (and has even tended to increase in recent months) compared to the high volatility of cryptos.
Personally, to take my first steps in this universe, I chose mining, because I was reluctant to invest my money directly in a things I knew badly, I felt reassured to have some physical things that I could sell easily "just in case".
But on the other hand, in addition to the initial investment, it is necessary to take into account the cost of energy, then also the risk of crashes, material failures, which could bring the miner to no longer be able to run, this supposes therefore a minimum of maintenance.
Besides, I prefer mining and masternodes to staking because I still have the impression that the only interest of stakable coins is precisely the fact that they are stakable...
I also think that the masternodes are the rigs of tomorrow (already from the point of view of energy).
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I'm not a technician of this stuff but in my opinion it is good to have a combination of both of them,
POS helps the community to avoid to much centralization of miners, POW helps to stabilize the blockchain network.
Yes, I agree that a hybrid system that combines these two systems of coin generation and transaction confirmation is more reliable. But I like PoS because of the low cost of equipment and power. I think that PoW in the future will be considered an outdated standard and will gradually disappear into the past as an outdated technology, but for now it's too early to talk about cryptocurrency at the very beginning of its development.
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I like that you can receive additional coins from the fact that my wallet is open for confirmation of transactions (PoS) and there is a certain amount on the account, without having to have large computing powers.
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POW is very difficult to understand and POS is the opposite, very easy to understand.
maybe I can explain this:
POW = mine coins
POS = trading with an existing con (if I'm not mistaken)
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Proof-of-stakes is design to fill the shortcomings of proof-of-work. There are some downsides to this one too though. But in all it is far better than PoW in terms of security, speed and cost effectiveness.