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Proof of stake

Proof of Work and Proof of Stake, Strengths and weakness of both Types of Blockchains. PoW or PoS?

Proof of Work (PoW) and Proof of Stake (PoS) which is ‘much better’ than the other, however each had distinct attributes that can bolster particular kinds of blockchain protocols.

The report analyzes PoW and PoS consensus mechanisms’ resistance abilities to the Sybil attacks.

Sybil attacks aim to control the whole network by manipulating numerous accounts, nodes, or computer systems. The most typical Sybil attack in the crypto space is the 51% attack, where the enemies attempt to take control of a minimum of 51% of all nodes to control the whole network. As decentralization lies at the core of blockchains, resistance to Sybil attacks is important.

Both PoW and PoS systems require nodes to purchase the network, so they’re persuaded to run a truthful and decentralized system.

According to the report, the PoW system’s market supremacy is 58%, while PoS’ is 12%. However, this does not imply PoW is better than PoS.

Proof of Work

Proof of Work
Proof of Work

PoW mechanisms need computational power to solve mathematic issues to mine blocks. Miners invest hardware and electricity in their operations and are rewarded with block benefits when they mine an honest block.


  • Being the dominant agreement mechanism in the crypto sphere, PoW systems have actually been checked in practice much more than PoS mechanisms.
  • PoW blockchains are particularly resistant to 51% attacks because taking over more than half of the nodes would be too pricey. Attackers wouldn’t have the ability to make enough to cover the electricity and hardware expenses for taking over 51% of the nodes, so it’s frequently not worth the trouble.
  • Controling governance protocol is also particularly hard in PoW mechanisms as well. As one node counts for one vote, it is tough to require a network-wide agreement. This would not be possible in PoS networks, where the users with the largest staked amount might hold an upper hand in the governmental choices.
  • As PoW systems likewise dissuade forking by design. As the PoW miners invest power into their mining operations, in the case of a fork, they would not run the risk of mining for the forked chain, thinking that it may not hold up. In PoS systems, forking is substantially easy as PoS miners can quickly stake for both the initial chain and the fork chain to double their incomes.

Weak points

  • PoW systems rely heavily on power intake, which raises concerns about its ecological impact. Also, miners are needed to upgrade their mining equipment continually to keep producing at maximum effectiveness.
  • Small PoW networks end up being prone to 51% attacks since the cost of taking over majority of the nodes would be affordable.
  • As all nodes operate anonymously, detecting a malicious node or avoiding it from taking part in the chain becomes impossible.

Proof of Stake

Proof of Stake
Proof of Stake

PoS systems count on locked-up coins to operate the network. Instead of consuming electricity and running hardware, PoS miners participate in the network by staking coins. Each time, the network randomly picks among actively staking nodes to confirm the credibility of deals and produce the next block.


  • PoS network needs almost no energy and is much more eco-friendly than PoW networks. This is the main incentive behind Ethereum’s recent combine with its Goerli testnet. As it doesn’t need computational power, PoS networks likewise eliminate their miners from having to upgrade their mining devices.
  • As PoS networks count on staked coins, it is possible to cut destructive nodes off once determined. In addition to avoiding them from participating in the chain again, the network can also confiscate their staked coins as a penalty, which is a reward to mine honest blocks for the miners.
  • The PoS systems eliminate the competition over mining blocks by picking the block validators randomly, which increases efficiency.
  • In general, PoS networks are easy to take part in considering that they don’t require too much power or special hardware. This reduces the entry barriers, making PoS networks accessible to more.

Weak points

  • PoS networks are a reasonably brand-new innovation and have actually been checked much less than PoW networks. Particular PoS networks can be susceptible to attacks in the future.
  • Nodes with the greatest quantity of staked coins can have the upper hand in governance votes. For that reason, PoS blockchains become more prone to centralization.
  • Although PoS networks normally lower the entry barriers, some PoS blockchains need large initial investments to end up being a node. This may keep the network from growing and turn it into a centralized blockchain.

PoS for scalability; PoW for decentralization and security
Proof of Work or Proof of Stake
Proof of Work or Proof of Stake

Thinking about the strengths and weak points of both protocols, the report concludes that neither is ideal against Sybil attacks. Nevertheless, each deals different advantages to blockchains, which can be important depending on the chain’s function.

Based upon their qualities, PoW networks offer strong decentralization and security. It is more extensively checked, hard to develop into a centralized network, and dissuades constant forking. A PoW network would be far more preferable for usage cases like difficult cash than a PoS one, as it will not enable the wealthiest to take control of the network and provides more security.

PoS networks, on the other hand, are far more energy efficient and much better options for networks that worth scalability. The network attaches nodes randomly to accelerate the procedure, and truthful nodes can obstruct destructive ones out of the system. A PoS network would benefit use cases most, consisting of clever contracts.