Altcoins Talks - Cryptocurrency Forum
Further Discussions => Blockchain Technology => Topic started by: Crypto on September 14, 2018, 08:53:38 AM
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Although the blockchain and crypto communities remain united around the ideology of blockchain and its world-changing potential, there is still one issue which proves to be as divisive as a hard fork — consensus protocols. Although proof-of-work (PoW) is still the protocol of choice for Bitcoin and many others, the debate rages over proof-of-stake (PoS), along with other emerging consensus protocols.
Proof-of-work (PoW)
The granddaddy of consensus protocols and the brainchild of Satoshi, the proof-of-work protocol involves block miners solving complex cryptographic puzzles, for which they receive rewards in the form of coins or tokens.
Pros
As the original protocol, PoW has proven its resilience against internal and external attacks.
Cons
PoW comes under fire for several reasons. It is highly energy intensive, with some estimates putting the Bitcoin network power consumption at the same level as 159 countries. Critics of Bitcoin such as Andrew Tayo have pointed out that much of this energy is wasted, as only one miner can eventually mine each block, regardless how many participate in the race to get there first.
Bitcoin is now mostly mined using ASICs, so mining is dominated by big operations such as Bitmain, which can afford the hardware needed to mine at scale. This concentrates mining power into the hands of the few, leading some in the community to call Bitcoin a centralized currency. Although some crypto tokens such as Vertcoin attempt to remain ASIC-resistant by regularly changing algorithms, it is a race to stay ahead of the ASIC manufacturers.
Readmore: https://cointelegraph.com/news/from-pos-to-dbft-a-brief-review-of-consensus-protocols