EVM, PoS, Fee
Here is an article on the three main blockchain -consensus algorithm used in the cryptocurrency and their differences:
—
The three main consensual algorithm: Guide to Krypto
The world of cryptocurrency is based on a complex network of decentralized ledges, each running its own version of the blockchain. These ledges include a number of key elements that allow secure, transparent and unlawful transactions. However, the consensual algorithms used in these leads can be slightly tricky. In this article we are immersed in the three main consensual algorithms: Work-of-of-of-of-of-Bour-of-Sake (POS) and Energy-based consensus (EBC).
Work-of-of (POW) Consensus Algorithm
The first main consensus algorithm used in cryptocurrency is Work-of-of (POW). This algorithm requires miners to solve complex mathematical puzzles using strong computers and significant amounts of energy. The first miner to solve the puzzle adds a new transaction block to the blockchain and transmits it to the network.
This is how the POW works:
- Mining competes to solve a complex mathematical puzzle.
2.
- The winner adds a new transaction block to the blockchain and forwards it to the network.
- Other miners check the solution with their own computer, ensuring that the transaction is valid.
- The rewarded miner receives a small amount of cryptocurrency as a reward for the puzzle solution.
POW Profits:
- Energy efficiency: POW uses significantly less energy than other consensual algorithms.
- Safety: Pow makes it virtually impossible to falsify or manipulate transactions.
POW COVANS:
- Expected and time consuming: miners need high -performance computers to solve complex mathematical puzzles, in the long run expensive and time -consuming.
- Centralized Mining: Many miners compete for a small slice of the reward pool, which can lead to centralization of mining power.
Certificate of stake (POS) Consensus Algorithm
The second main consensus algorithm used in the cryptocurrency is a certificate of stake (POS). This algorithm will reward the validers with some of the block reward or transaction fees based on their share of the network. Validators are chosen by randomly selecting the validators who “put” their tokens.
This is how POS works:
- The validers insert a certain amount of chips into the network.
2.
- There is a greater chance of being valid with the highest stakes to become the next valider.
POS Profits:
- Energy efficiency: POS uses significantly less energy than POW, making it more sustainable and cost -effective.
- Safety: POS makes it much difficult to counterfeit or manipulate transactions, but it is still vulnerable to centralization if it is not performed properly.
POS Disadvantages:
- Complexity: The selection process can be complex and time -consuming, leading to potential security risks.
- Centralization: While POS is less energy intensive, POS can continue to lead to centralization of validators and mining pools.
Energy-based consensus (EBC) Consensus Algorithm
The third main consensus algorithm used in the cryptocurrency is energy-based consensus (EBC). This algorithm rewards validators with a part of the block reward or transaction fees based on their energy consumption.
This is how EBC works:
- The validers insert a certain amount of chips into the network.
- When validating validers, they randomly select the selection of validators, using energy consumption as an additional factor in their validation decision.
- A validation with the lowest energy consumption has a greater chance of becoming the next valider.