In the world of blockchain technology, there are numerous different consensus algorithms. Some of these are better suited to short-term considerations and others are better suited for long-term use. This article will cover each of the most popular consensus algorithms in detail, and help you decide which one best fits your needs.
Proof of Work
Proof of work is a system that requires a computer to find a solution to a mathematical problem before it can add its block to the blockchain. The difficulty of this task varies depending on how much effort is being put into mining across the network. In proof-of-work systems, miners must compete with one another in order to be awarded new bitcoins or transaction fees paid by users sending transactions across the network.
In addition, proof-of-work systems make it more difficult for someone (or some entity) who does not own any computing power themselves but wants to alter information stored in blocks on a blockchain (for example, changing account balances).
Proof of Stake
Proof of Stake is a consensus algorithm that is used to select the next block creator in a blockchain. It is a consensus algorithm that uses a validator’s stake, or ownership of the cryptocurrency, as a measure of how likely they are to create honest blocks.
Proof-of-stake systems are often considered more energy efficient than proof-of-work systems because they don’t require miners continuously performing calculations as part of their job. Instead, most proof-of-stake systems use “forks” from previous blocks (usually with some …A Comparison of Consensus Algorithms Read More