I think we've had the discussion many times now and I believe the only thing that could add value to the discussions is if something bad happens to either PoW or PoS chains due to a malicious attack.
For me, more likely to affect POS (ETH) after 2.0 which will then bring questions to everyone about POS.
Topic: PoW and PoS; Pros and Cons (Read 170 times)
PoS and PoW are both same ways of climbing a same mountain. Like in bitcoin PoW only those who can afford expensive mining machines and electricity can survice, likewise in PoS those who have massive coins for staking can play their part in blockchain.
* Security
Proof of work: More security and resistance to 51% attacks.
Proof of stake: Vulnerable to 51% attacks if the market is small.
Proof of work: More security and resistance to 51% attacks.
Proof of stake: Vulnerable to 51% attacks if the market is small.
The solution could be to use dual layer platforms in order to keep the network safe with the PoW and to have an upper layer dedicated to the development of platforms managed by a DAO. An interesting project is Nervos.
There are PoW coins that are more faster than bitcoin and also have lesser transaction fees, to me PoW algorithm wins over PoS coins here, till date even DeFi projects are facing security issues which I believe is the most important thing about using crypto, PoW just do this better when it comes to 51% attack too and some are already wishing PoW algorithm gone
* Security
Proof of work: More security and resistance to 51% attacks.
Proof of stake: Vulnerable to 51% attacks if the market is small.
* Security
Proof of work: Network decentralization and resistant to censorship.
Proof of stake: There is a potential risk of double spend is some proof stake protocols.
Proof of work: More security and resistance to 51% attacks.
Proof of stake: Vulnerable to 51% attacks if the market is small.
* Security
Proof of work: Network decentralization and resistant to censorship.
Proof of stake: There is a potential risk of double spend is some proof stake protocols.
Another big issue is that someone with a lot of PoS coins who also controls the network doesn't care as much about that network because they can dump their coins and get out any time they want but you can't do the same with your mining equipment, it is not easy to sell ASICs quickly and getting out not to mention the investment it requires.
So a PoW miner cares about the network A LOT more than a PoS bag holder who is getting paid for bag holding.
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* Fees and performance
Proof of work: Low speed and higher fee per transaction.
Proof of stake: Faster node consensus and more scalability.
Wrong.Proof of work: Low speed and higher fee per transaction.
Proof of stake: Faster node consensus and more scalability.
Fees and scalability are only affected by the amount of usage that coin has not its algorithm. The reason why you see no congestion in PoS coins is because altcoins as a whole are useless. And pump and dumping doesn't create that much on-chain volume on altcoins (all the volume is on exchanges).
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* Power consumption
Proof of work: High power consumption and the need for expensive processing equipment.
Proof of stake: Less power consumption and no need for expensive processing equipment.
This factor should not be "power consumption" but instead "provided security / power consumed". Then it becomes meaningful. PoS that provides little to no security is consuming a lot more energy that PoW that provides a huge level of security. Proof of work: High power consumption and the need for expensive processing equipment.
Proof of stake: Less power consumption and no need for expensive processing equipment.
Proof of stake coins is also the target of the scammers when they want to fool people because they can use it to lure them into thinking that the coins their using will become big time in the future like any other coins in the top list of the crypto market. The victims will only need to buy a certain amount of coins and they now have some stake that will increase every time it hits a certain transactions numbers. All they need to have is hold some of those coins. but mostly scammers create POS coins just too used for pump and dump in the market which most of their investors believe that the coin will recover after it sinks to the bottom. There are lots of people who get attracted because of its convenience but the risk is so high because you could be holding POS coins that have no value in the market after the people who made it has already made their exit.
Proof of work and proof of stock are two common methods in crypto currencies. Which mechanism do you think is better? Proof of work in coins like Bitcoin or proof of stock in coins like Polkadot?
I assume you were trying to say Proof of Stake here and not "proof of stock". I am not that familiar with Polkadot, but I am quite certain that it doesn't use a standard PoS consensus mechanism, but nevermind. You made a few errors in your comparisons when you refer to Proof of Work as "Proof work" or Proof of Stake as "Proof Stake". Maybe you can correct that to make it a tick better.
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Do not mind the articles you are reading online, some are just with false information based on the little they know. You know block reward for bitcoin is 10 minutes, did you think it can not be reduced to 1 minute? If this will disrupt the bitcoin mining reward, halving and some protocols Satoshi has set, so let us leave bitcoin aside, did you think the algorithm can not be set to 1 minute for another PoW coin which will make the scaling faster?Also do you know the block size can be increased? Like bitcoin using 1M, it can be increased to 2M or more for fast scaling.
I know those I mentioned will only lead to hardfork, that is why I said we should leave bitcoin alone, but generalizing PoW is not having fast scaling is not right, it depends on the algorithm and protocols used.
Read through it again to change two typo errors, it is proof of stake.
Since I'm writing the post using my phone, the auto correction sometimes goes wrong. However, fixed now. Thanks.
I do not believe this, people only making use of bitcoin to make conclusion, do you think if bitcoin community agree to make bitcoin more scalable with PoW not changed, do you think it is not possible? It is possible.
Litecoin is using POW, transaction is 3 minutes to complete.
Dash is using POW, transaction is completed almost instantly.
Digibyte is using POW, transaction is completed almost instantly.
Comparing to the other pow coins, these transactions can be done faster, yes. But if compare the average speed of PoW transactions to PoS, you will see the difference. For example, If the number of transactions increase hugely on LTC, you won't have your transaction done in ~3 minutes.
Take a look at this graph and you will understand, yes, the transaction time is mostly stable at ~3min. But, we had is sometimes at 4,5 or six minutes.
However, repeat once again. You will to consider the average transaction times of all pow coins for comparing to pos coins not just a few coins.
Proof of work and proof of stock are two common methods in crypto currencies. Which mechanism do you think is better? Proof of work in coins like Bitcoin or proof of stock in coins like Polkadot?
I assume you were trying to say Proof of Stake here and not "proof of stock". I am not that familiar with Polkadot, but I am quite certain that it doesn't use a standard PoS consensus mechanism, but nevermind. You made a few errors in your comparisons when you refer to Proof of Work as "Proof work" or Proof of Stake as "Proof Stake". Maybe you can correct that to make it a tick better.Whenever there is an argument and comparison between PoW and PoS people always end up fighting over which one is centralized and which one isn't. People claim that PoS is centralized because the more coins you have available to stake, the bigger your rewards will be. That means that those with deeper pockets make greater profits. But a similar argument can be made for PoW as well. The better your mining hardware is (number and the quality of your ASICs) the bigger the associating mining rewards will be and the likelihood of mining the next block. More money buys more quality mining hardware.
Proof of work and proof of stock are two common methods in crypto currencies. Which mechanism do you think is better? Proof of work in coins like Bitcoin or proof of stock in coins like Polkadot?
Read through it again to change two typo errors, it is proof of stake. * Fees and performance
Proof work: Low speed and higher fee per transaction.
Proof stake: Faster node consensus and more scalability.
I do not believe this, people only making use of bitcoin to make conclusion, do you think if bitcoin community agree to make bitcoin more scalable with PoW not changed, do you think it is not possible? It is possible. Proof work: Low speed and higher fee per transaction.
Proof stake: Faster node consensus and more scalability.
Litecoin is using POW, transaction is 3 minutes to complete with low fee.
Dash is using POW, transaction is completed almost instantly with low fee.
Digibyte is using POW, transaction is completed almost instantly with low fee.
Proof of work and proof of stake are two common methods in crypto currencies. Which mechanism do you think is better? Proof of work in coins like Bitcoin or proof of stake in coins like Polkadot?
Consensus mechanisms are one of the main components of blockchain networks that make it possible to secure assets and confirm transactions.
Currently, the most popular and basic consensus mechanisms in blockchain are proof work and proof stake.
In this post, we will get acquainted with the pros and cons of these methods.
I'm not sure If I could mention all the comparison factors, tried to mostly cover the main parts. let me know if I missed anything for comparing.
Consensus mechanisms are one of the main components of blockchain networks that make it possible to secure assets and confirm transactions.
Currently, the most popular and basic consensus mechanisms in blockchain are proof work and proof stake.
In this post, we will get acquainted with the pros and cons of these methods.
* Security
Proof of work: More security and resistance to 51% attacks.
Proof of stake: Vulnerable to 51% attacks if the market is small.
* Fees and performance
Proof of work: Low speed and higher fee per transaction.
Proof of stake: Faster node consensus and more scalability.
* Security
Proof of work: Network decentralization and resistant to censorship.
Proof of stake: There is a potential risk of double spend is some proof stake protocols.
* Power consumption
Proof of work: High power consumption and the need for expensive processing equipment.
Proof of stake: Less power consumption and no need for expensive processing equipment.
Proof of work: More security and resistance to 51% attacks.
Proof of stake: Vulnerable to 51% attacks if the market is small.
* Fees and performance
Proof of work: Low speed and higher fee per transaction.
Proof of stake: Faster node consensus and more scalability.
* Security
Proof of work: Network decentralization and resistant to censorship.
Proof of stake: There is a potential risk of double spend is some proof stake protocols.
* Power consumption
Proof of work: High power consumption and the need for expensive processing equipment.
Proof of stake: Less power consumption and no need for expensive processing equipment.
I'm not sure If I could mention all the comparison factors, tried to mostly cover the main parts. let me know if I missed anything for comparing.
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