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Will Proof of Stake Replace Proof of Work?

Proof of Stake is considered to have better efficiency and safety factors than Proof of Work

If you have been in the cryptocurrency world for a long time, maybe the term proof of stake and Proof of work familiar. Both have advantages and disadvantages of each. is proof of stake will replace Proof of work at a later time?

Definition Proof of Work

Before going into something deeper, it would be better if you first understand what it is about Proof of work. Basically, Proof of work is a protocol to prevent various attacks cyber, such as Distributed Denial-of-Service, which seeks to drain all system resources by performing fictitious requests.

This concept existed long before bitcoin appeared. Satoshi Nakamoto, the inventor of bitcoin, used this technique. Therefore, Proof of work often called bitcoinconsensus.

As the name implies, all the algorithms that work need the help of computational performance that aims to crack certain codes in order to mine blockchain. Miners will perform various hash experiments to increase the hash power. This will allow miners to be able to perform more experiments every second.

Miners who own hash rate high will have more chance of finding a solution for the next block. Algorithm consensus proof of work ensure that miners can only validate transactions on new blocks and then add them to the blockchain when the network is reached political consensus.

Definition of Proof of Stake

After understanding Proof of work, no less important thing is to know more about proof of stake. Proof of stake is an algorithm political consensus which has been developed since 2011. This algorithm is deliberately prepared to replace the algorithm Proof of work because it uses a much more efficient concept.

The algorithm uses a new block mechanism which is validated based on the number of coins or stake holders as a blockchain coin holder. One of the interesting variants of proof of stake is Delegated Proof of Stake or DPoS. DPoS will utilize a voting system. The inventor of this method was Dan Larimer, a blockchain developer and entrepreneur.

The Delegated Proof of Stake process on the Vexanium blockchain occurs at layer 2. That is, there will only be 50% of the entire political consensus Vexanium. On the other hand, the rest will be involved in the actual process to confirm all blocks to the end by means of Asynchronous Byzantine Fault Tolerant. So, it can be said that there are two layers involved in the Vexanium model, namely layer 1 using the original consensus method and layer 2 using DPoS.

Difference between Proof of Stake and Proof of Work

Of course there is quite a stark difference between proof of stake and Proof of work. Proof of work commonly used to determine how the blockchain can reach consensus. It can be said to say Proof of work it also plays a role in how a network can ensure that transactions can be valid and that no party is making a bad attempt.

Cryptography applies mathematical equations that are quite difficult and perhaps only sophisticated computers can solve these equations. No similarities are the same. Once done, the network will know that the transaction is genuine.

Although it is an extraordinary discovery, in fact Proof of work there are still drawbacks such as requiring a large amount of electricity and also being limited to the number of concurrently processed transactions. This encourages alternative solutions in the form of proof of stake.

The first project to implement the model proof of stake is Peercoins. After using this system, there are several benefits such as a more equal mining system, less dependence on electricity, and more scalable transactions.

The world's second most popular crypto asset, Ethereum, is in the process of transitioning from Proof of work going to proof of stake. So, is proof of stake will replace Proof of work? The answer could be.

Better Proof of Work or Proof of Stake?

At its core, every blockchain system has various vulnerabilities, including methods Proof of work nor proof of stake. All of these blockchain systems must conform to the conditions of the consensus protocol or how security can be built and what is the reward for this system.

Proof of work it's actually fairer. This is because miners with power P can get blocks and get rewarded with probability P. In the system proof of stake, there will be a concern, namely that the coin owner has no incentive to release the coin to another party. This is because the number of coins greatly affects the value of wealth.

Furthermore, Proof of work have an objective consensus protocol, whereas proof of stake is a subjective protocol and its nodes need up-to-date information.

Although there are still shortcomings, opportunities proof of stake replace Proof of work very large. With the system proof of stake, validators don't have to use computing anymore because the most influential factor on their odds is the number of their own coins. Switch from Proof of work going to proof of stake will bring benefits such as more energy efficient and more secure network security.

- Disclosure: This article was written by Yudha Situmorang, Co-Founder InvestBro.id

Header image by DepositPhotos

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