Proof of Work/Proof of Stake

Now let us educate ourselves, this is one good opportunity about the blockchain that I have grown to love. Talking about education when it comes to Blockchain and cryptocurrency, blogging blockchain like Hive, Scorum and co have done alot of work with regards to that. The moment where you are looking for where to educate yourself, search no more as Blogging blockchain like Hive, Scorum and co can render good coverage on that. Just like what I hinted above, these are the reasons I said that I valued the cryptocurreny ecosystem more better. Most of the little things that I have grown to know about are simply possible because of the knowledge that I have acquired from the cryptocurreny blogging platform like the ones I mentioned above.

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This post was triggered by what recently happened in the Ethereum blockchain where they moved from Proof of stake to proof of work. Ever since the smooth fork, I have been observing alot of things about this new fork. I must admit that I must commend the engineers/programmers and team behind the Ethereum fork, they are indeed amazing and fantastic. They are such a great team, just imagine what they did by making sure that with the upgrade nothing happened to the chain. I never knew they were upgrade at all, everything happened so fantastic and superb. I have not seen an upgrade like this in a very long run. All the ones that I have seen, always encountered issues for some time before they will be able to start running properly. This is the simple reason why I am giving the team some accolades.

Back to the topic of the day, I am going to explain what both system means. I might not be going into it more complex. Since Ethereum blockchain is currently running on proof of Stake I will say that we should be talking about the Proof of work before talking of the proof of Stake.

Let me explain what this means in a nutshell as if I am explaining to a little child. Proof of Work was developed by Satoshi Nakamoto, the person that brought cryptocurrency into existence. It is the very first distributed consensus mechanism. As the name implies, in Proof of work, as a miner you will have to compete against each other miners. For you to be able to do this miners must make sure that they have the best machines in place in other for them to be able to make a lot of money from the Blockchain. You have to push in a lot of effort for you to be reward from this type of system. This is why it is called proof of work, i.e you have to work. Many miners don't love this consensus system simply because it requires you to be able to make money from this system. Another thing to note is that many people can't easily key into the system simply because of how stressful it required to be a miner in the proof of work ecosystem.

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Proof of Stake in the other hand means that you have to have money in the system before you can be making money as a miner from the system. Unlike the Proof of work system, you don't need to have money in the system before you can make money from the program. I don't fancy this system, this is simply because for you to be able to create a block it means that you will need to have a stake in the system. Not just having a stake, the more your stake, the more the chances of you producing blocks. This will lead to people trying to gain the system by investing more money into the system, the good thing is that this will push more money into the system unlike the proof of work system.

From the above I believe we must have learnt one or two things about what proof of work and proof of Stake means when it comes to cryptocurrency and blockchain in particular. I will be creating more post regarding this as we progresses. I hope you learnt from this.

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