The rising value of crypto tempts more miners to join the network, and this in turn boosts the power and security of the system. For proof of work consensus protocol, heavy equipment like computers with GPU and hard drives are used. The computer must have high efficiency to perform these mining operations.
This algorithm uses SAH-266 hash functions, which provides a robust mechanism for the system, thus, resulting in a highly secured peer-to-peer network. It only increases when the number of miners increases and the network grows. To overcome this issue, Proof of Stake is used and considered as an alternative to Proof of work. Whatever it might be, the ultimate objective of a successful blockchain network should be to solve the so-called blockchain problems of security, decentralization, and scalability. Proof of work might be used to distribute money to the community at the start of a blockchain and then switched to POS after that. Users that submit a legitimate block onto the blockchain are rewarded in PoS networks.
Proof of work is a widely used consensus technique in cryptocurrency networks such as Bitcoin and Litecoin . It requires a participating node to demonstrate that the work they have completed and submitted qualifies them to add new transactions to the blockchain. Stacks also unlocks the hundreds of billions in capital in Bitcoin, and gives Bitcoiners new opportunities to use and earn BTC.
What Is Consensus Mechanism: Proof Of Stake Vs Proof Of Work
The blockchain platform, Ethereum actively works on the Proof of stake consensus protocol. Also, altcoins use the concept of proof of stake, which is less attacked by the miners. It is sometimes considered more secure than that of the Proof of Work consensus algorithm.
Proof of Work OR Proof of Stake?