The latest interpretation of the main difference between the principle of POS mining and the principle of POW mining

What is POS mining? What is the principle of POS mining? What is POW mining? As an upgraded version of POW mining, why is POS mining more popular? What is the difference between POS mining and POW mining? Familiar with blockchain Everyone in, digital currency and hard disk mining knows Bitcoin. For investors in hard disk mining, POS mining and POW mining are more familiar. However, there will still be many new friends who do not know the difference between the two. What is the difference between the two? The DDS ecological community has prepared an article to share with you, hoping to help you.

Proof of Work (POW) and Proof of Rights (POS) should be the most extensive consensus mechanism in blockchain technology.

Although Proof of Work (POW) has been widely criticized by investors, it is a thoroughly verified consensus mechanism (verified by Bitcoin). It is not perfect, but it is 100% effective.

Proof-of-stake (POS) is a solution proposed to solve the imperfect proof of work, and it should be better. Although it has not received much criticism, its effectiveness and safety have been questioned.

Compared with PoW mining, pos mining has the advantages of lowering the entry threshold for investors, the consistent interests of miners and token holders, low latency and fast confirmation, but in terms of privacy protection, voting governance mechanism design, etc. There are some flaws.

What are the main differences between POW mining and POS mining? The DDS ecological community will reveal the advantages and disadvantages of the two for you.

First: POS and POW have different sources of computing power

First of all, in PoW mining, it is the computing speed of the mining machine (CPU, graphics card, ASIC, etc.) that determines who is better able to mine, but it is different in POS. POS mining does not require you to purchase additional mining equipment, nor does it take up a lot of computing resources.

Second: The number of coins issued by POS and POW is different

It turns out that in POW, the bitcoins produced in a block have nothing to do with the coins you previously held. However, the DDS ecological community tells you very responsible: In POS, the more coins you originally hold, the more coins you can mine. For example, if you have 1,000 coins, and these coins have not been used for half a year (183 days), then the number of coins you dig is as follows:

1000 (coin number) * 183 (coin age) * 15% (interest rate) = 274.5 (coin)

What is the principle of pos mining? Why does Pow switch to Pos mining? In fact, since 2018, some mainstream digital currencies including ETH and Ethereum have chosen to switch from Pow to Pos, or adopt a combination of the two model.

The main reason for this is that under the POW consensus mechanism, mining miners consume a lot of computing power and increase the cost of handling fees. Once ZF bans the mining farm, the entire mining farm will face the threat of paralysis. However, under the principle of pos mining mechanism, the difficulty of mining has a small correlation with computing power, and the largest correlation with the number of coins and holding time, so there is no high cost of electricity consumption. Moreover, the miners who are mining are also the holders of the currency, and there is a demand for cash transfer, so they will not say that the handling fee is raised very high. Therefore, network transfer is faster and cheaper than the POW mechanism, which has become a new development direction.

Post time: Dec-08-2021