This is the original 1250th issue of the vernacular blockchain
Author | Produced by Guo Lifang
｜Vernacular Blockchain (ID: hellobtc)
When you start to dabble in blockchain or cryptocurrency, it seems that you often encounter brain-burning terms such as PoW and PoS. Today, let’s talk about what is PoW, PoS, and DPoS.
PoW, PoS, and DPoS, in one sentence, are the three mainstream consensus mechanisms of blockchain.
The blockchain , in layman's terms, is a decentralized ledger. It's just that this ledger is different from the traditional ledger. It's not an accountant or a few people who keep it, but everyone can participate in it.
Moreover, this bookkeeping requires a rule that everyone recognizes, that is, "how to keep accounts effective", and this rule that everyone recognizes is the consensus mechanism of the blockchain.
For example, if a large family of yours plans to travel abroad, and after discussing it, you choose Thailand, then traveling to Thailand is the consensus formed by your family. The way of negotiation is that the minority obey the majority, and the minority obey the majority is your consensus mechanism for determining the tourist destination.
Similarly, PoW, PoS, and DPoS, respectively, represent the three main accounting rules of the blockchain network. They have a very large effect and are directly related to the distribution of accounting rights and related benefits. It is no exaggeration to say that the consensus mechanism is the soul of the blockchain.
01
PoW (Proof-of-Work) proof-of-
work mechanism
Proof of work, in simple terms, is a certificate used to confirm that you have done a certain amount of work. It is like your university diploma, which proves that you really have four years of university study experience. The workload proof mechanism is to use the workload result to prove the size of the contribution, and then determine the accounting rights and rewards according to the size of the contribution.
This proof process relies on a computer to perform mathematical operations. It can be understood as: Everyone is going to answer the same question. Whoever calculates it first will be responsible for keeping the accounts and get the corresponding reward. This reward is the digital currency generated by the network.
For example, in the Bitcoin network system, whoever solves the problem first gets Bitcoin as a reward.
The advantage of PoW is that it is completely decentralized, fair and just, without a centralized management organization, and fair competition among users (ie nodes) is achieved. Whoever solves the problem first will get the corresponding benefits.
The main disadvantage is the waste of energy. When everyone calculates the problem together, it consumes computing power, and in the end, only the work done by one user is effective, and the work done by others is useless.
The computer is driven by electricity, and everyone uses the computer to calculate problems together, which actually consumes a lot of power resources. For example, Bitcoin uses the PoW consensus mechanism, which consumes billions of dollars worth of electricity every year, and has been criticized.
02
PoS (Proof-of-Stake)
equity proof mechanism
The equity proof mechanism, that is, the more equity you have, the more rewards you can get. The equity here refers to the amount and time of the digital currency you hold, according to which the equity is distributed, similar to the dividend system of stocks.
The more coins you hold, the longer you hold, that is, the longer the coin age (coin age = number of coins * holding time), the more dividends you can get, and the greater the accounting right.
There are three advantages of PoS:
One is that it consumes less energy and does not need to consume a lot of energy like the proof-of-work mechanism.
Second, the cost of doing evil is high. If you want to attack the network, you must have 51% of the coin age. This is very difficult. Not only does it require a large amount of coins, but it also needs to be held for a long enough time;
The third is that the time to reach a consensus is short, and if the network environment is good, millisecond speeds can be achieved.
There are two disadvantages of PoS. One is that the holding of coins tends to be centralized, because the more coins you hold, the longer the time, the greater the distribution of income, and the more coins you get, which makes the coins too concentrated; the other is liquidity If the currency has a profit distribution, there is no incentive to cash out, and the currency will not move, and the mode of earning money will be turned on, resulting in the deterioration of the liquidity of the currency.
03
DPoS
entrusted equity proof mechanism
The DPoS entrusted equity proof mechanism is optimized on the basis of PoS. Through voting, producers are selected to perform their rights and obligations on their behalf, rather than being determined by computing power.
If the producer is not competent, he may be voted out at any time. The weight of the vote and the distribution of income are calculated according to the percentage of the total number of cryptocurrencies held. The voting results of 51% of shareholders are irreversible and binding.
DPoS is similar to a joint-stock company. Ordinary shareholders cannot enter the board of directors. They must vote to elect representatives to form the board of directors. Each person's digital currency is used to calculate the weight, and then based on the weight, people who can represent their rights are voted to act as an agent for bookkeeping.
The advantages of DPoS are that the number of accounting nodes is small, the collaboration is efficient, and the accounting efficiency is high . The disadvantage is that the degree of decentralization is weakened, and accounts are kept by selected representatives, and there is a certain degree of centralized control.
04
Conclusion
At present, no consensus mechanism is perfect, and each has its own shortcomings. With the continuous development of blockchain technology, the consensus mechanism will continue to be optimized, and the future can be expected.
END
Previous post : Popular Science | What is a 51% attack?
"Disclaimer: This article is the author's independent point of view, and does not represent the vernacular blockchain position. This content is only for the popular science learning and exchanges of encryption enthusiasts, and does not constitute investment opinions or suggestions. Please take a rational view, establish a correct concept, and increase risk awareness. The copyright of the article and the final interpretation right belong to the vernacular blockchain. 』
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