Proof of Work vs. Proof of Stake: Beginner’s Guide!! ๐Ÿ‘จโ€๐Ÿซ


๐Ÿ“ฒ Insider Info in my Socials ๐Ÿ‘‰ https://guy.coinbureau.com/socials/
๐Ÿ›’ Binance 20% Fee Discount ๐Ÿ‘‰ https://guy.coinbureau.com/binance/
๐Ÿ‘• “Blockchain” Hoody ๐Ÿ‘‰ https://store.coinbureau.com/product/blockchain-hoodie/
๐Ÿ”ฅ TOP Crypto TIPS In My Newsletter ๐Ÿ‘‰ https://guy.coinbureau.com/signup/

~~~~~
๐Ÿ“บEssential Videos๐Ÿ“บ

Cryptocurrency Climate ๐Ÿ‘‰ https://youtu.be/DidAwxWaDKI
Cryptocurrency For Beginners ๐Ÿ‘‰ https://youtu.be/VYWc9dFqROI
Cryptocurrency Tax Tips ๐Ÿ‘‰ https://youtu.be/EMNSwa_PkkA
Fastest Cryptocurrencies ๐Ÿ‘‰ https://youtu.be/1jzpL27SOak

~~~~~

– TIMESTAMPS –
0:00 Intro
1:51 Cryptocurrency Consensus Explained
5:51 What Is Proof Of Work?
10:24 What Is Proof Of Stake?
13:42 PoW: Strengths & Weaknesses
16:32 PoS: Strengths & Weaknesses
21:05 Conclusion: Which Is Better?

~~~~~

โ›“๏ธ ๐Ÿ”— Useful Links ๐Ÿ”— โ›“๏ธ

โ–บ Proof of Work Explained: https://academy.binance.com/en/articles/proof-of-work-explained
โ–บ Proof of Stake Explained: https://academy.binance.com/en/articles/proof-of-stake-explained
โ–บ In Favor of Proof of Work: https://www.danheld.com/blog/2019/1/5/pow-is-efficent
โ–บ In Favor of Proof of Stake: https://vitalik.ca/general/2020/11/06/pos2020.html
โ–บ Proof Of Work Cryptocurrencies: https://cryptoslate.com/cryptos/proof-of-work/
โ–บ Proof of Stake Cryptocurrencies: https://cryptoslate.com/cryptos/proof-of-stake/

~~~~~

๐Ÿ‘จโ€๐ŸซCryptocurrency Consensus Explained๐Ÿ‘จโ€๐Ÿซ

Consensus in cryptocurrency follows the same idea as consensus between people. The difference is itโ€™s computers coming to a consensus AKA an agreement about whether a transaction is valid or not. Usually, the consensus threshold in cryptocurrency is more than half, or 51%

โ›What is Proof of Work?โ›

Any computer that wants to process transactions on a proof of work cryptocurrency blockchain like Bitcoin needs to solve a complex equation to earn the right to do so. This costs time and energy to do

If this sounds tedious and arbitrary, itโ€™s because it is. This idea of work exists exclusively as a means of protecting a cryptocurrency from manipulation by the computers connected to its blockchain

๐Ÿ’ฐWhat is Proof of Stake?๐Ÿ’ฐ

Instead of using large amounts of computing power and energy to solve an equation to process transactions, a cryptocurrency coin is staked i.e. locked on the blockchain to earn the right to do so

The length of time a cryptocurrency must be staked to process transactions can vary, as can the minimum amount of coins or tokens a computer must lock up as stake

Logically, the more cryptocurrency you stake, the more likely you are to process transactions and create a block

โ›“PoW: Advantages and Disadvantagesโ›“

In theory, anyone can connect their computer to a proof of work cryptocurrency to process transactions and earn cryptocurrency as a reward for doing so

However, over the years companies have developed specialized computers called application specific integrated circuit machines or ASICs for short. This is gradually centralizing PoW cryptocurrencies

Whatโ€™s worse is that when a new and improved ASIC is released, the older model usually ends up in a landfill, and this is one of the many environmental concerns about proof of work cryptocurrency mining

๐Ÿ’ฑPoS: Advantages and Disadvantages๐Ÿ’ฑ

In theory, anyone can connect their computer to a proof of work cryptocurrency to process transactions and earn cryptocurrency as a reward for doing so

This is facilitated by the minimal hardware and energy requirements to participate in most proof of stake cryptocurrency blockchains

However, most proof of stake cryptocurrency blockchains have high thresholds when it comes to the minimum stake you need to put down to connect to it as an independent computer

Moreover, most proof of stake cryptocurrencies had something called a premine which is where a bunch of coins or tokens are minted in advance and distributed to the team and large investors

Consequently, most proof of stake cryptocurrencies are more centralized than Bitcoin and Ethereum since the average user is stuck delegating to a validator or staking pool belonging to the team and VCs

~~~~~

๐Ÿ“œ Disclaimer ๐Ÿ“œ

The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.

#bitcoin #blockchain #consensus #staking #mining #pos #pow

Investing Your Money Into A Safe Investment: Online Banking

How is investing cash into an on-line savings account any type of better than a bank managed account? There are lots of reasons, however the top concern being riches structure, this is where electronic banking exercises much better.

A Secure Job – The Hidden Obstacle To Wealth Building

Almost every staff member targets their dream job. The meaning of desire job will differ from one person to another, however to a lot of individuals, it is characterized by a risk-free protected job with a lot of additional benefit, a significant retirement plan, and also a remote opportunity of being terminated. Benefiting the federal government has actually long been related to such attributes.

How To Invest Money – Wealth Building Basics

Conserving money is generally the starting point for many people that want to be monetarily free. Nonetheless, after the art of saving has actually been refined, you will certainly observe that your cash is not expanding as quick as you would like it to. Instantly rates of interest begin to make sense.

5 Wealth Building Secrets Of The Rich

You have most likely listened to people say they have attempted whatever imaginable and also have actually quit on the suggestion of building wide range. Could it be that there is an item of the puzzle that is still missing out on? Individuals trying to find monetary success commonly desire over night results and also they wonder why they are disappointed.

How To Have Health Wealth And Wisdom In Your Life

Some individuals invest most of their lives gaining riches, just to invest back their wealth, getting wellness. This is not wisdom. However, suppose I must inform you, that there is a method where you can have all 3.

You May Also Like