source: Blockgeeks
Topic: why are proof of work (pow) coins better than the coins of icos? (Read 157 times)
Just a little research from internet, its basic different between POW & POS for ur understanding
source: Blockgeeks
source: Blockgeeks
Hey i just read lot of explanation in the net about pos and pow and it seemed a bit confusing .
So pow need energy to run computers .. and those computers will need to compete with each other and the first who solve the algorithm will have a reward . That mean other computers will not get rewarded and the energy spent will be lost with no reawrd ? Like in competition number 1 get $$ while other get nothing dispute the work they put in solving the puzzle ?
And pos like some sources say it's the proof of wealth so if a computer hold 5 % of a coin he will be able to mine 5 % of the puzzle or block and his reward is 5 % of the pool reward ... so no competition and it's like a cooperative work where no energy will be lost like in the pow !
What i wrote above is my idea and what i understood so far ... so please correct me if I'm wrong or is there any good and simplified source you know that you can reffer me to so i can understand more .
@franky1
So pow need energy to run computers .. and those computers will need to compete with each other and the first who solve the algorithm will have a reward . That mean other computers will not get rewarded and the energy spent will be lost with no reawrd ? Like in competition number 1 get $$ while other get nothing dispute the work they put in solving the puzzle ?
And pos like some sources say it's the proof of wealth so if a computer hold 5 % of a coin he will be able to mine 5 % of the puzzle or block and his reward is 5 % of the pool reward ... so no competition and it's like a cooperative work where no energy will be lost like in the pow !
What i wrote above is my idea and what i understood so far ... so please correct me if I'm wrong or is there any good and simplified source you know that you can reffer me to so i can understand more .
@franky1
reason one security
because no one spends alot of funds/time to create the ICO's, no one cares if the system breaks. no one cares about a real 5 -500 year future. and so these coins have no strength/power backing them up. if a hacker group really wanted to waste their time on an ICO they could find many bugs and holes to mess with that system.
but with POW coins. many hackers for years have tried to find ways around POW, but cant break it
take some POS coins
som coins are so buggy that anyone can start at block zero and quicky sign their own blocks containing tx data of their own choosing and quickly create a chain that out paces the chain other people have. making some coin holders then accept the newly created chain and divert away from the old chain (yea some chains dont have mile stone locks to preserve certain chain with a certain hash history)
many ico's spring up so quickly that investors dont even bother reading the source code to check for bugs or do due dilegance to see if the ICO wallet is a real coin wallet or just a trojan filled with key loggers and coin wallet stealing functionality. they simply run first cry later
reason two. value
gold costs somthing becaus see it costs something to make it
air does not cost anything to make
proof of work is proof of labour. knowing it costs x to make 1btc, makes people know that pools wont sell below x. and as time goes on and historic puchases of cheaper coins get sol, the new buyers wont sell below their price and so a minimumm(bottom) price emergs and over time increases.
but other ICO's that just make coins out of no where with no cost of creation. have no bottom value. no costs that need to be covered and so thy can be sold at any price and so they will not have the same long term price incline as POW
..
now imagine if it didnt require large excavators and sluce machines to mine gold, costing over $1k a ounce. imagine gold could be found with a simple magnet for $1.. the price of gold would be only a few dollars right now. even without messing with the supply/demand/utility. just messing with the cost of production would effect the end value.
imagine bitcoin didnt need an average of xx exahash to mine a bitcoin. but was made by 2 people in a garage spending just $1 a day in electric. they would be selling bitcoin to cover their electric and bitcoin would not be as high as it is now.
check out the price data for around autumn 2013. (october).. then check out events.. like the hashrate of that period. yep. ASICS were first launched publicly in october 2013, which is where the first major price rise began
because no one spends alot of funds/time to create the ICO's, no one cares if the system breaks. no one cares about a real 5 -500 year future. and so these coins have no strength/power backing them up. if a hacker group really wanted to waste their time on an ICO they could find many bugs and holes to mess with that system.
but with POW coins. many hackers for years have tried to find ways around POW, but cant break it
take some POS coins
som coins are so buggy that anyone can start at block zero and quicky sign their own blocks containing tx data of their own choosing and quickly create a chain that out paces the chain other people have. making some coin holders then accept the newly created chain and divert away from the old chain (yea some chains dont have mile stone locks to preserve certain chain with a certain hash history)
many ico's spring up so quickly that investors dont even bother reading the source code to check for bugs or do due dilegance to see if the ICO wallet is a real coin wallet or just a trojan filled with key loggers and coin wallet stealing functionality. they simply run first cry later
reason two. value
gold costs somthing becaus see it costs something to make it
air does not cost anything to make
proof of work is proof of labour. knowing it costs x to make 1btc, makes people know that pools wont sell below x. and as time goes on and historic puchases of cheaper coins get sol, the new buyers wont sell below their price and so a minimumm(bottom) price emergs and over time increases.
but other ICO's that just make coins out of no where with no cost of creation. have no bottom value. no costs that need to be covered and so thy can be sold at any price and so they will not have the same long term price incline as POW
..
now imagine if it didnt require large excavators and sluce machines to mine gold, costing over $1k a ounce. imagine gold could be found with a simple magnet for $1.. the price of gold would be only a few dollars right now. even without messing with the supply/demand/utility. just messing with the cost of production would effect the end value.
imagine bitcoin didnt need an average of xx exahash to mine a bitcoin. but was made by 2 people in a garage spending just $1 a day in electric. they would be selling bitcoin to cover their electric and bitcoin would not be as high as it is now.
check out the price data for around autumn 2013. (october).. then check out events.. like the hashrate of that period. yep. ASICS were first launched publicly in october 2013, which is where the first major price rise began
can someone explain me that logic?
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