Understanding Blockchain Fundamentals, Part 2: Proof of Work & Proof of Stake

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Articles in this Understanding Blockchain Fundamentals series:


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Running time of solving the Byzantine Generals Problem with the algorithm proposed by Lamport, Shostak and Pease (n = number of actors, m = number of traitors)

Blockchains use consensus algorithms to elect a leader who will decide the contents of the next block.


Proof of Work (PoW)

Example:
keccak256("hello") = 1c8aff950685c2ed4bc3174f3472287b56d9517b9c948127319a09a7a36deac8
keccak256("hello1") = 57c65f1718e8297f4048beff2419e134656b7a856872b27ad77846e395f13ffe
Example - hash is a hypothetical hash function that has the outputs listed as below
Y = 10, X = 'test'
hash(X) = hash('test') = 0x0f = 15 > 10
hash(X+1) = hash('test1') = 0xff = 255 > 10
hash(X+2) = hash('test2') = 0x09 = 9 < 10 OK, Solved.
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Almost all African countries (separately) consume less electricity than the Bitcoin Mining industry

Proof of Stake (PoS)

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Conclusion


Loom Network

Distributed Enterprise Platform for Healthcare Providers

Thanks to James Martin Duffy

Georgios Konstantopoulos

Written by

Research @paradigm. prev: independent consultant

Loom Network

Building a distributed enterprise platform for managing data — focused on healthcare providers and government departments.

Georgios Konstantopoulos

Written by

Research @paradigm. prev: independent consultant

Loom Network

Building a distributed enterprise platform for managing data — focused on healthcare providers and government departments.

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