Part 3: What Is Proof-of-Stake (PoS)?
Due to consensus mechanisms, blockchain technologies can carry out transactions, validate, and synchronize data. Even though each method has benefits and drawbacks, these all have been proven to be efficient in keeping a blockchain. The two algorithms, however, employ distinct methodologies.
Block developers are recognized as validators in a PoS system. A validator analyzes transactions, verifies activity, casts their votes on conclusions, and keeps records. These creators in Proof of Work (PoW) are miners. In addition, miners solve complex math problems to verify transactions.
Investors need to obtain the minimal amount of coins or tokens required to be considered a validator for a PoS blockchain to "buy into" the position of becoming a block creator. To complete the computations for PoW, miners need to acquire computing equipment and pay high energy costs to power the machines.
PoW operations require expensive energy and equipment, which limits who can mine and boosts the blockchain's security. However, they are more energy-efficient, and PoS blockchains typically enable greater scalability.
Hungry for more? Join me each week, where I'll break down complex topics and dissect the latest news within the cybersecurity industry and blockchain ecosystem, simplifying the world of tech.