The global crypto market cap is $ with a 24-hour volume of $. The price of Bitcoin is $24,019.30 and BTC market dominance is %. The price of Ethereum is $1,895.01 and ETH market dominance is %. The best performing cryptoasset sector is Abandoned, which gained 7%.
The Right Place to Buy, Earn, Exchange and Borrow against Your Crypto.
A recent study by Kraken concluded that neither PoW nor PoS mechanisms are the 'better' option. Instead, each has unique characteristics that fit better with different blockchain designs.
Cover art/illustration via CryptoSlate
A study by Kraken took a deep dive into the Proof of Work (PoW) and Proof of Stake (PoS) mechanisms to discover neither was ‘better’ than the other, but each had unique characteristics that can bolster specific types of blockchain protocols.
The report examines PoW and PoS consensus mechanisms’ resistance abilities to the Sybil attacks.
Sybil attacks aim to control the whole network by manipulating multiple accounts, nodes, or computers. The most common Sybil attack in the crypto space is the 51% attack, where the attackers try to take over at least 51% of all nodes to control the whole network. As decentralization lies at the core of blockchains, resistance to Sybil attacks is crucial.
Both PoW and PoS mechanisms require nodes to invest in the network, so they’re convinced to run an honest and decentralized system.
According to the report, the PoW mechanism’s market dominance is 58%, while PoS’ is 12%. However, this doesn’t mean PoW is better than PoS.
PoW mechanisms require computational power to solve mathematic problems to mine blocks. Miners invest hardware and electricity in their operations and are rewarded with block rewards when they mine an honest block.
PoS systems rely on locked-up coins to operate the network. Instead of consuming electricity and operating hardware, PoS miners participate in the network by staking coins. Each time, the network randomly chooses amongst actively staking nodes to verify the validity of transactions and produce the next block.
Considering the strengths and weaknesses of both protocols, the report concludes that neither is perfect against Sybil attacks. However, each offers different benefits to blockchains, which can be valuable depending on the chain’s purpose.
Based on their characteristics, PoW networks offer strong decentralization and security. It is more extensively tested, difficult to turn into a centralized network, and discourages constant forking. A PoW network would be much more desirable for use cases like hard money than a PoS one, as it won’t allow the richest to take over the network and provides more security.
PoS networks, on the other hand, are much more energy efficient and better solutions for networks that value scalability. The network attaches nodes randomly to accelerate the process, and honest nodes can block malicious ones out of the system. A PoS network would benefit use cases most, including smart contracts.
Zeynep is an academic who turned to crypto in 2018. Originating in social sciences, she is especially interested in the social impact of blockchain and cryptocurrencies and strongly believes in their transmuting power.
Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.
Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.
Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
Bitcoin is a consensus network that enables a new payment system and completely digital money. Learn more
Ethereum is the community-run technology powering the cryptocurrency ether (ETH) and thousands of decentralized applications. Learn More
Kraken is a San Francisco-based digital asset exchange in euro volume and liquidity that trades various currencies, including Canadian dollars, US dollars, British pounds, and Japanese yen. Learn More
Deaton believes SEC’s decision to file a lawsuit against Ripple and its executives for violation of securities law has affected the value of XRP.
PlanB, the creator of the S2F model for Bitcoin is promoting copy trading on ByBit to followers claiming 100x returns compared to HODLing
A wallet address with an unknown owner moved nearly 133,000 Bitcoins.
Circle's USDC has "blacklisted" all Ethereum addresses owned by Tornado Cash listed in the US Treasury Department's sanction against the protocol.
Got a story tip? Email [email protected]
Disclaimer: By using this website, you agree to our Terms and Conditions and Privacy Policy. CryptoSlate has no affiliation or relationship with any coin, business, project or event unless explicitly stated otherwise. CryptoSlate is only an informational website that provides news about coins, blockchain companies, blockchain products and blockchain events. None of the information you read on CryptoSlate should be taken as investment advice. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own diligence before making any investment decisions. CryptoSlate is not accountable, directly or indirectly, for any damage or loss incurred, alleged or otherwise, in connection to the use or reliance of any content you read on the site.
© 2022 CryptoSlate. All rights reserved. Terms | Privacy
Please add "[email protected]" to your email whitelist.