Hello. GBT Protocol Communities.
GBT Protocol.
Last time, I explained about the first generation of consensus algorithm, PoW.
Let me re-point about PoW for someone who forget about PoW.
PoW(Proof of Work) is the first generation of consensus algorithm to compete with other nodes to be selected to get the right of next block.
Bitcoin is the best example of the usage of this algorithm.
However, It has been raised the inefficiency problem as the principle of this work simply compete about longer running time of pc.
Today we are going to study about the second generation of consensus algorithm, PoS which is resolving this problem.
Let’s start!
PoS refers Proof of Stake, it literally means that one node who has most coins from that main net will automatically get the right of next block and prove transactions.
The reason of occurence of PoS is to fix the problem of PoW, excessive usage of electricity.
PoW gives the chances of new blocks to a node whose computing power is highest among nodes.
On the other hand, PoS gives the chances of new blocks to a node who has the biggest amount of coins.
It is also eco-friendly since it avoids excessive usage of power.
Additionally, it could enhance the power of 51% attack.
In PoW, Hackers try to acquire 51% of computing power,
In PoS, Hackers need to 51% of coins which cost enormously, which is much harder to hack.
However, Even PoS also has drawbacks.
PoS is deepening the risk of the polarization phenomena between coin holders.
That is because the principle of the working system is based on the competition in holding amount of coins.
In other words, It is more likely happen that specific nodes who has relatively more coins will get higher chances of continuous opportunities for linking blocks. It could eventually trigger the risk of polarization.
Today we briefly look into the concept of PoS.
Next time, we are going to study about the third generation of consensus algorithm, DPoS.
Let’s keep us steady til we are gonna be blockchain masters!
