π Why we require Proof-of-Stake consensus mechanism if we have Proof-of-Work?
If you have read my last tweet, you should have at least 1 answerπ
- Negative impact on the environment π
- Expensive to be a miner π΅
- Scalability : Less transactions processed per secondβ±
If you have read my last tweet, you should have at least 1 answerπ
- Negative impact on the environment π
- Expensive to be a miner π΅
- Scalability : Less transactions processed per secondβ±
π What is Proof-of-Stake?
- It does not have miners but instead validators
- Only who put their crypto on stake become validators
- There is no competition but a validator is picked in a pseudo-random way, who propose to add next block
- It does not have miners but instead validators
- Only who put their crypto on stake become validators
- There is no competition but a validator is picked in a pseudo-random way, who propose to add next block
- Other validators "attest" or checking it to be true
- Both type of validators are rewarded basis their stake
- If wrong block is proposed or attested, staked coins are slashed. Meaning loosing a portion of coins staked
- Both type of validators are rewarded basis their stake
- If wrong block is proposed or attested, staked coins are slashed. Meaning loosing a portion of coins staked
π What are the factors affecting validator selection?
- How long a validator has been staking
- Randomisation
- And, highly on amount staked. Higher amount staked, higher chances of getting selected
- How long a validator has been staking
- Randomisation
- And, highly on amount staked. Higher amount staked, higher chances of getting selected
π Does it mean that whoever stakes more will most of the time gets selected? Leading to centralisation?
Can you think or find answer to that? π§
If you can't find the answer, let me know in the comments. I'll answer to that π»
Can you think or find answer to that? π§
If you can't find the answer, let me know in the comments. I'll answer to that π»
π What is the benefit of it?
- Incentivised mechanism - More participation for becoming validators
- Fear of loosing the crypto staked indirectly forces the validators to act in the networkβs best interests
- Increased scalability
- Don't require bigger machinery
- Incentivised mechanism - More participation for becoming validators
- Fear of loosing the crypto staked indirectly forces the validators to act in the networkβs best interests
- Increased scalability
- Don't require bigger machinery
π Are there any cons of Proof-of-Stake?
- It's relatively less tried and tested than Proof-of-Work
- Person need to have a minimum number of crypto coin to become a validator
- It's relatively less tried and tested than Proof-of-Work
- Person need to have a minimum number of crypto coin to become a validator
Congratulations!π₯³ Now you know about the two major consensus mechanisms.
What will the next thread be on? It'll be on "What is web3?"π
What will the next thread be on? It'll be on "What is web3?"π
Thank You for reading! If you liked this thread, follow me @GargEtisha and retweet this tweet so that it can reach to maximum people. Thank you
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