Proof of Work (PoW) and Proof of Stake (PoS)

Proof of Work (PoW) and Proof of Stake (PoS)

To understand the validations within the blockchain, it is important to grasp two very important subjects that ensure secure and accurate transactions.

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Proof of Work (PoW)

Proof of Work is a consensus algorithm used in blockchain that relies on solving complex mathematical problems. Network participants (known as "miners") compete to find the solution to the problem, and by doing so, they validate new transactions in the blockchain.

Proof of Work is widely used in cryptocurrencies like Bitcoin and Ethereum.

Proof of Stake (PoS)

Proof of Stake is an alternative consensus algorithm. In this algorithm, the decision of which miner will validate a block is randomly determined but with a higher probability for those who meet a set of criteria. Among these criteria, we can mention the amount of reserved currency and the duration of participation in the network, but others can be defined.

Proof of Stake is considered more efficient in terms of processes compared to Proof of Work since it does not require specialized hardware. Additionally, it is considered more secure than PoW because validators have a financial interest in maintaining the integrity of the blockchain.

PoS is used in cryptocurrencies like Cardano and Tezos.

By Sonica W3 Learning Center

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