Both can be more decentralized than the each other, depending on the distribution of mine power. PoW requires the proof of some kind of work to determine the next block, but PoS requires an actual stake of the currency to determine the next block. PoS can essentially eliminate the problem of needing the processing power and the energy to finish the PoW algorithm, and seems to be a better solution as it drastically reduce its power consumption.
However the problem with POS is the gap between the rich and the poor, because the longer a miner holds a token, the greater the age of the token, and thus the greater the reward. so a larger stake holder would grow his coin stake faster than a smaller stake holder. In this way, the rich miners will become richer and richer, thereby this may leads to centralization of mining in one sense.
Topic: PoW vs PoS (Decentralized) (Read 196 times)
The problem of POW is when you have no miners on the Network the chain dosnt move anymore and the Coin is useless till miners come back and mine it.
Thats the reason why so many older coins (shitcoins) die or have been died as long they havnt an hybrid mode and both POW/POS.
If the POW coin has something that it can be used for long term it will be stay alive .
Thats the reason why so many older coins (shitcoins) die or have been died as long they havnt an hybrid mode and both POW/POS.
If the POW coin has something that it can be used for long term it will be stay alive .
POW requires the mining computational power and the difficulty increase it will require more power. So it become out of reach of the normal miners and only those who have mining farms are able to mine it. So with less people mining, the more centralized it gets.
POS is different in a way that you do not need any hashing power but more the coins you own the more benefits you will get in staking. So in this case if you are more wealthy then you can control more the shares which will also supports centralization to some extent.
Aren't both again being same? In PoW, you need expensive mining equipment, leave the BTC mining apart. While in the PoS, you need investment for purchasing coins, you can't get a stake reward with a small amount of course. At the end of the day, both requires big investment.POS is different in a way that you do not need any hashing power but more the coins you own the more benefits you will get in staking. So in this case if you are more wealthy then you can control more the shares which will also supports centralization to some extent.
Still confused
Exactly. Which is what I meant in my first reply that you are asking the wrong questions.
POW requires the mining computational power and the difficulty increase it will require more power. So it become out of reach of the normal miners and only those who have mining farms are able to mine it. So with less people mining, the more centralized it gets.
POS is different in a way that you do not need any hashing power but more the coins you own the more benefits you will get in staking. So in this case if you are more wealthy then you can control more the shares which will also supports centralization to some extent.
Aren't both again being same? In PoW, you need expensive mining equipment, leave the BTC mining apart. While in the PoS, you need investment for purchasing coins, you can't get a stake reward with a small amount of course. At the end of the day, both requires big investment.POS is different in a way that you do not need any hashing power but more the coins you own the more benefits you will get in staking. So in this case if you are more wealthy then you can control more the shares which will also supports centralization to some extent.
Still confused
Both the PoW and PoS system have their own benefits. I don't know much about these, only know what PoW and PoS is and a little of the basic differences.
I didn't understand one difference between these 2, which one is most decentralized? How? Please share how exactly PoW/PoS is the most decentralized.
I didn't understand one difference between these 2, which one is most decentralized? How? Please share how exactly PoW/PoS is the most decentralized.
Both of them are decentralized but i will give you one example where it may be easy to understand.
POW requires the mining computational power and the difficulty increase it will require more power. So it become out of reach of the normal miners and only those who have mining farms are able to mine it. So with less people mining, the more centralized it gets.
POS is different in a way that you do not need any hashing power but more the coins you own the more benefits you will get in staking. So in this case if you are more wealthy then you can control more the shares which will also supports centralization to some extent.
From my opinion, i think PoW is much less prone to centralization as compared to PoS especially if the network is big. Centralization becomes an issue as big players start getting into the mining game with time. As the case for BTC, as mining becomes less profitable for people with a few mining rigs, the big players take over while the small players abandon mining making it look less decentralized.
PoS also has its issues like you might have already noticed with top altcoins that use PoS like EOS and TRON. Some People have already lost trust in them on grounds of manipulations, and yet they even barely two years old. Imagine how it will be 5-6 years from now.
I believe PoW is still very solid as compared to PoS
PoS also has its issues like you might have already noticed with top altcoins that use PoS like EOS and TRON. Some People have already lost trust in them on grounds of manipulations, and yet they even barely two years old. Imagine how it will be 5-6 years from now.
I believe PoW is still very solid as compared to PoS
Both the PoW and PoS system have their own benefits. I don't know much about these, only know what PoW and PoS is and a little of the basic differences.
I didn't understand one difference between these 2, which one is most decentralized? How? Please share how exactly PoW/PoS is the most decentralized.
I didn't understand one difference between these 2, which one is most decentralized? How? Please share how exactly PoW/PoS is the most decentralized.
proof of work is prone to centralization in terms of mining and mining hardware production. here are some scenarios where this type of centralization could harm the network: https://medium.com/@jimmysong/mining-centralization-scenarios-b74102adbd36
proof of stake is an unsolved problem. it's generally either secured through trust-based/centralized means (like DPOS) or hybrid POW because pure POS can't be achieved securely. POS systems are prone to centralization through maldistribution, stake pooling, low validation rates, low voting participation, and so on. some discussion of those issues:
https://thenextweb.com/hardfork/2019/03/28/vitalik-buterin-concerns-ethereum-proof-of-stake/
https://www.quora.com/Why-does-proof-of-stake-invite-centralization
proof of work is the only trustless and secure form of decentralized consensus. it's hard to gauge levels of centralization when comparing completely different consensus systems, but POW always wins re trustlessness and security.
You can't really say that either PoW or PoS is more decentralised or centralised. They're both pretty much the same thing.
Both the PoW and PoS system have their own benefits. I don't know much about these, only know what PoW and PoS is and a little of the basic differences.
I didn't understand one difference between these 2, which one is most decentralized? How? Please share how exactly PoW/PoS is the most decentralized.
I didn't understand one difference between these 2, which one is most decentralized? How? Please share how exactly PoW/PoS is the most decentralized.
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