Treehouse Profile picture
Mar 10 10 tweets 7 min read
#CryptoBytes

So you’ve heard about Proof-of-Work (PoW) 🔨 being used in #Bitcoin and #Ethereum, what about Proof-of-Stake (PoS) 💰? Read on!

If you’re unfamiliar with PoW, read our previous thread here:

🧵👇
Proof-of-Work and Proof-of-Stake are both consensus mechanisms or algorithms that ensure the security of the #blockchain. 🔒

In simple terms, they are used to select which participants/nodes should be given the chance and authority to add a block to the chain.

/1
This ensures security because it helps to filter participants who may not be genuine or committed to the #network.

In both mechanisms, chosen participants have to contribute a certain resource such as money or energy. This prevents bad actors from overtaking the network. 😇

/2
In PoS, instead of miners, we have #validators! ✅

Unlike miners competing to solve the hash function in PoW, validators are chosen “randomly” to add blocks. Some factors such as how much #cryptocurrency they are holding can increase their chances of being chosen.

/3
Just as miners expend energy in PoW, validators need to spend money on #tokens.

Since this will cause them to have a significant stake in the #network, they'll have vested interest in its progress and success. This, yet again, reduces the chances of bad actors. Why is that?

/4
If any attackers want to take control of the #network, they will need to hold at least 51% of the #cryptocurrency and control at least 51% of the network’s nodes.

What are some significant pros and cons of PoS compared to PoW? 🤔

/5
PoS is more environmentally friendly ♻️ than PoW because unlike #mining, not much energy needs to be expended.

However, PoS security is "less robust" since participants can “pay” to be given the chance to add a block to the chain, rather than needing extensive hardware.

/6
PoW requires constant ongoing expenditure of resources in the mining process. Conversely, PoS only mainly requires an upfront cost from the participants.

PoS, however, solves the problems of inefficiency and scalability that PoW faces.

Which networks make use of PoS? 🤔

/7
Some examples of #blockchains using the PoS mechanism are @Polkadot, @EOSIO, @Cardano.

Did you know @ethereum, which was originally built on a PoW system, is currently working towards transitioning to PoS in #Ethereum 2.0? 🚀

/8
Which are your favorite PoS #blockchains? Did we cover the basics of the PoS mechanism?

🌳More about Treehouse here treehouse.finance
🌳Discord
bit.ly/TreehouseDC
🌳Telegram t.me/treehousefi

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Treehouse

Treehouse Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @TreehouseFi

Mar 11
#DeFi Daily 11/03/22

#Bitcoin pulled back on Thursday, falling by 8.54%. It found support below the key $39.5k level. Price retested the downward channel which it broke out of on Wednesday during US trading hours.

Read more: 🧵👇 BTCUSD Graph
#Ethereum’s $ETH has hit through the trailing stop loss at $2577 yesterday afternoon. We suggest observing retest of the $2350-2550 base area + trendline since Feb 2021 on a daily chart which also serves the lower bound of the wedge.

/1
#DeFiTVL sits at 200.6b today as it has remained relatively flat throughout the week. Overnight, there were more rotations out of the #Fantom ecosystem, driven by outflows from #Solidex and #Solidly.

/2
Read 7 tweets
Mar 10
#DeFi Daily 10/03/22

$BTC saw a breakout yesterday during Asian trading hours. Price cleanly broke above the $39.5k resistance line, while the hourly RSI moved into overbought levels, revealing a renewed short term #bullish momentum.

Read more: 🧵👇 BTCUSD Graph
$ETH had a similar move yesterday as it broke out of its inverted head and shoulders pattern. Looking at the daily time frame, ETH is forming a wedge pattern where the level to break above would be around the $2.85k level.

/1 ETHUSD Graph
#DeFiTVL rose about 10bn overnight to 204.5bn currently. This was again led by @terra_money and @wavesprotocol, with TVLs sitting at 26.4bn and 2.4bn respectively. #Terra’s #TVL has grown by 12.2% over the past 7 days while #Waves has grown by 48.5%.

/2
Read 7 tweets
Mar 9
#CryptoBytes

#Cryptocurrency like #Bitcoin are known for being volatile. Here's an overview of how $BTC price fluctuated over the years:

Read our previous thread about Bitcoin here:

🧵👇
#Bitcoin has seen significant growth since its start in 2009 with some major price drops. $BTC price remained below US$2, for the first few years but in June 2011, the price shot up to US$31, before it plummeted down to a single digit. 📈📉

/1
In April 2013, #Bitcoin’s price grew to US$200, and by November, it was valued at more than US$1000!
From this, the price skyrocketed to US$10,000, in November 2017 and in just 4 years, $BTC price rose to around US$68,990, in November 2021.

/2
Read 5 tweets
Mar 9
Andre Cronje, dubbed ‘Godfather of DeFi”, will be exiting the space according to a tweet by his long-time colleague Anton Nell on 6th March, who will also be joining him.

Out of the loop? Here’s a thread explaining the incident:

🧵👇
Who is Andre Cronje?

If you’re new to the space: Cronje is one of the most influential and prolific developers in #DeFi. Having held the position of Technical Advisor at @FantomFDN, Cronje’s knowledge in #blockchain technology is profound.

/1
The experienced developer worked in numerous organizations within the space, contributed to the development of significant projects like @CurveFinance, @FantomFDN, @SushiSwap and founded the widely successful @iearnfinance along with @thekeep3r.

/2
Read 17 tweets
Mar 9
#DeFi Daily 09/03/22

$BTC rose 4% during Tuesday’s Asian trading hours, and traded near the upper bound of a widening channel during US trading hours. Hourly, BTC has been making higher lows without higher highs – a strong resistance on its downward trend line.

Read more: 🧵👇 BTCUSD Graph
$ETH shows a similar price pattern to $BTC. It is now at a critical crossroad with price near its yearly support. For now, ETH has found support from the line on the daily as yesterday’s daily candle closed above the line.

/1 ETHUSD Graph
#DeFiTVL A small uptick to 195.4bn from yesterday as users gain confidence from the small boost in #crypto markets last night. @wavesprotocol and @terra_money led this rise. Liquid staking platform @LidoFinance contributing a 1.3bn increase in #Terra overnight.

/2
Read 7 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!

:(