Proof-of-Work and Proof-of-Stake: what is it in simple terms?

 Proof-of-Work and Proof-of-Stake: what is it in simple terms? The key feature of this mathematical problem is asymmetry: it should be moderately difficult for the miner, but easy enough for the network as a whole. This is achieved through cryptography. Every miner in the network tries to solve the problem first; at the same time, it can actually be found only by direct enumeration, so many attempts are required for a successful solution. An example, perhaps a little fantastic, but illustrative. Imagine being handed a keyboard with several million numbered keys. You are looking for exactly the key that you need to complete the task correctly, but you do not know its number, so you sort through everything. There is a crowd around you, also looking for the right key. Suddenly you found the right key, tell everyone “guys, I found the key, its number is 22 875”. Everyone around starts checking key number 22875, and oh yes, it is. The one who finds the key first wins a prize. Each is th...

POW vs PoS: which is better?

 POW vs PoS: which is better?


POW is well tested and used in many cryptocurrency projects.

Blockchain DDoS attacks using this algorithm are not possible with today's computing technology. However, the high cost of energy, the negative environmental impact, the resulting unfavorable media coverage, the increasing centralization in mining, and the low transaction throughput will likely make it unviable in the long term.

Communities are increasingly concerned about the high electricity costs of bitcoin mining.

The PoS algorithm provides a more scalable blockchain with higher transaction throughput, and several projects have already adopted it, such as the DASH cryptocurrency.

However, POS is not perfect either. For example, during staking, an attacker can also commit fraud and confirm incorrect transactions.