I know Bitcoin is running on a proof of work consensus algorithm. Recently I discovered proof of stake by reading up a bit on Cardano and Ethereum's 2.0 plans.
What is the difference between these two, how does POS reduce the energy required to mine a block transaction and are either of these more secure than the other? Basically what are the pros and cons of each.
Also if POS consumes less energy, then wouldn't it be a good idea for Bitcoin to transition to a POS algorithm?
What is the difference between these two, how does POS reduce the energy required to mine a block transaction and are either of these more secure than the other? Basically what are the pros and cons of each.
Also if POS consumes less energy, then wouldn't it be a good idea for Bitcoin to transition to a POS algorithm?
Yes , it would be, but bitcoin cult members can't grasp that, for some reason it destroys their dogma,
kind of the same way they refuse to do anything to improve onchain transaction capacity.
Asking that question here and you get a slanted one-sided replies, PoW good, PoS bad,
but if you want the truth look at coins such as Cardano and Algorand, PoS V3 blockchains,
their performance and cost & energy efficiently exceed bitcoin by leaps and bounds.
All one has to do is look at the majority of new coins and no one bothers with outdated Proof of Waste anymore.
Biggest question is how long can a Country or State, continue to support an ever growing PoW energy drain before their power grid collapses.
China wisely banned all Bitcoin PoW Mining to protect their power grid and their people,
Texas has foolishly taken up the slack, and could suffer a fatal power grid collaspe this winter thanks to being suckered into allowing Bitcoin PoW Mining.
You can monitor Texas power grid here: http://www.ercot.com/
Within 1 - 2 years, Texas will also be forced to decide save their power grid and their people, or rolling blackouts until the total grid failure occurs all for the sake of bitcoin PoW miners.
There's alot of fud and lies in your statements. Do you happen to be affiliated with the state of china perhaps? The attempt to frame bitcoin as a cult is number 1 the lie about china banning bitcoin to save power grids is 2. if Texas has a power grid issue with the large scale miners you would think something would be said Prior to them setting up eh? lots of Private grids in Texas. They are weird like that letting the free market decide.
Not Fud, it is Fact.
https://gizmodo.com/a-chinese-province-could-ban-bitcoin-mining-to-cut-down-1846397717
Quote
Over the past decade,
bitcoin has put increasing stress on the largely coal-powered grid of China’s Inner Mongolia.
Now, the province is clamping down.
Late last week, province officials announced plans to ban all new bitcoin and other cryptocurrency mining ventures and quickly phase out existing activity in order to
reduce electricity consumption.
bitcoin has put increasing stress on the largely coal-powered grid of China’s Inner Mongolia.
Now, the province is clamping down.
Late last week, province officials announced plans to ban all new bitcoin and other cryptocurrency mining ventures and quickly phase out existing activity in order to
reduce electricity consumption.
Bitcoin miners fled to Texas & Kazakhstan.
https://forkast.news/headlines/kazakhstans-power-shortages-crypto-miners-scramble/
Quote
Kazakhstan — one of the popular destinations for Chinese crypto miners as they look for more regulation-friendly shores
— continues to face power shortages, with its national grid operator last week rationing power after some failures occurred in a few power units.
— continues to face power shortages, with its national grid operator last week rationing power after some failures occurred in a few power units.
Quote
the power consumption demand in some parts of Kazakhstan has overrun the power generation volume
“due to the sharp increase in consumption by the digital mining consumers (over 1,000 MW) and higher number of emergencies at power plants.”
“due to the sharp increase in consumption by the digital mining consumers (over 1,000 MW) and higher number of emergencies at power plants.”
Kazakhstan does not have the energy reserves of Texas so their power grid drama will play out sooner.
Watch the news and the power grids for any country or state dumb enough to welcome the energy draining bitcoin miners over the next year,
rolling blackouts don't lie.
FYI:
If you think Bitcoin PoW energy waste is not a problem,
If you think Bitcoin lack of onchain transaction capacity is not a problem.
Your are in the Bitcoin Cult.
https://medium.datadriveninvestor.com/bitcoin-isnt-dead-but-it-is-a-cult-1183b4d2318f
https://medium.com/@zelphontheshelf/10-signs-youre-probably-in-a-cult-1921eb5a3857
https://adamcaudill.com/2018/06/21/bitcoin-is-a-cult/
https://www.zmescience.com/science/news-science/nobel-prize-winning-economist-calls-bitcoin-a-cult/
The most important thing that distinguishes POW from POS is network security as well as decentralization. The POW that Bitcoin operates on is the most secure and more decentralized and the more hashing power the more secure the network and this makes it very difficult to hack, but at the same time this makes the transaction take longer and the fees are higher. .
As for POS, I think its main advantage is lower costs, which makes fees lower and transactions faster, but the network security is much lower and there is a risk of the network becoming centralized if the largest share is concentrated in the hands of a few groups.
As for POS, I think its main advantage is lower costs, which makes fees lower and transactions faster, but the network security is much lower and there is a risk of the network becoming centralized if the largest share is concentrated in the hands of a few groups.
Bitcoin decentralized, Nope.
The Top 4 btc mining pool operators control over 61% of all of bitcoin hashrate, looks centralized to me.
A mere collusion of 4 people is all that is required to doublespend on the bitcoin.
While Cardano has over 670 active staking pools, now that looks decentralized and more secure.
With a PoS coins any owner can join a pool and stake their coins and participate in the network security.
With PoW, you are at the mercy of the top 4 pool operating overlords, which is ok, if you like being a slave to whims of those 4 people.
PoW is slavery for the masses & PoS is Freedom , choose according to your true nature.
Slogans and fud that you push do not make for reality. It only attempts to warp reality. The china fud with electricity is rather amusing attempt on your part due to the fact that china is known for lying about well....everything really and, has a 4,000 year history of doing so. Following this logic you can easily see how you would believe everyone else's fud to push whatever coin they currently have, I've already pointed out Cardanos critical flaw which is currently unsolvable. Its betting on AI to catch up and solve the problem. but I doubt that will happen. even if it does the fact its designed to be centralized means its has built in corruption problems.
I do think bitcoins future hashrate has a pareto distro problem. It currently does not. Where in the future it has this problem is unknowable at this time.