The increasingly popular ‘proof-of-stake’ system handles the approval of transactions in a different way, while also managing the distributed network in the blockchain technology. It is an alternative algorithm, which objective is the same as the ‘proof-of-work’, but the way it achieves that is obviously different.
‘Proof-of-Stake’ versus ‘Proof-of-Work’
Approval Of Transactions
The increasingly popular ‘proof-of-stake’ system handles the approval of transactions in a different way, while also managing the distributed network in the blockchain technology.
Higher Transaction
The more cryptocurrency of a specific platform you own, the higher the chances of receiving the transaction fees as a reward.
Design of block verification
The major difference between the two consensuses is the verification and validation process of a transaction within a block.
Monopolization
The main advantage of the ‘proof-of-stake’ consensus is that no computational power is required, instead a capital to invest in tokens.
Security of the two algorithms
When it comes down to security of the cryptocurrency networks against this type of attack, it is safe to say that huge networks as Bitcoin (proof-of-work)
Sustainability concerns
the design of ‘proof-of-work’ algorithm requires an ever-increasing computational power to ‘mine’ blocks, because the difficulty to successfully chain a new block is continuously increased.
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Cryptocurrency trading involves buying and selling digital assets (like Bitcoin and Ethereum) on exchanges. Traders aim to profit from price fluctuations by buying low and selling high