Proof of interest (POS) is a great algorithmic invention in the age of technology. This consensus mechanism plays an important role in the blockchain economy.
In a decentralized blockchain ecosystem like Ether, any crypto transaction needs to be confirmed authentic by miners to confirm the security of the transaction before it can become part of the chain.
All nodes participating in the chain need to confirm the transaction in order to become part of the system, which is the consensus mechanism.
Such a consensus mechanism allows the nodes in a decentralized system to operate together without risk. Given its high level of protocol code, this consensus mechanism eliminates the risk of malicious attacks on the contract.
Theoretically, if an attacker can control 51% of the system, then he can gain control of the network-wide consensus.
Blockchain platforms can use two different consensus mechanisms, POW or POS.
The current Ethernet 1.0 blockchain platform uses the POW consensus mechanism. Ether 2.0, which is being upgraded, will use the better performing POS protocol in the future.
Similarly, BTC uses the same POW mechanism to confirm individual transactions, which is why BTC can use energy consumption to generate coins.
Not surprisingly, future blockchain platforms will use the more energy efficient and less secure POS consensus mechanism.
In the blockchain ecosystem, there is a generation of “miners”. A miner’s primary role is to win the race to validate transactions, which in turn creates new blocks and becomes one part of the system.
Only one miner can win a block. The ownership of the block is then broadcast throughout the network, which means that the operation of the network is upgraded in parallel with the addition of new blocks.
The POW mining process can be understood as requiring miners to quickly solve an extremely difficult mathematical puzzle, and the first miner to come up with the answer gets his reward: block ownership.
This article won’t go into too much detail about this mechanism. Let’s look at how POS works.
One of the major advantages of POS is that it fits the security needs of the blockchain. As mentioned in the appeal, a single malicious user would require 51% of the computing power share of the entire network in order for them to successfully hack the system.
This would require a significant investment in equipment and energy by malicious users to achieve, so the very high threshold represents a success for proof-of-stake consensus algorithm security.
Another major advantage of POS is that it is very energy efficient compared to POW and the transaction GAS fees are not high.
A deeper understanding of POS
Proof of Stake uses Staking to reach consensus distributed in the blockchain network.
The verifier now needs the corresponding cryptocurrency in the blockchain in order to verify the transaction through Staking and reach consensus with all nodes in the network.
POS Operating Model
- Block creation
POS differs from POW in that the verifier does not need to consume as much network computing power as in POW.
Compared to the previous “race to decrypt”, in POS miners are no longer in a competitive relationship, but are randomly selected.
The lucky user in POS only needs to create a block, not mine the block completely.
Users who are not selected can become attesters to verify blocks created by other users. This validation process is called attesting.
The attesters are rewarded for successfully attesting blocks, but if the attestation is incorrect, the attesters lose all their voting rights in the network.
This requires at least 128 attesters to prove each block, which is called a “committee”.
- Block creation
In the final stage before a block is successfully created, each block-verified transaction becomes part of the blockchain.
For example, in the Ethernet 2.0 POS system, a block is created when 2/3 of the validators maintain consensus on the block with each other.
Advantages of POS
- Extreme energy saving. The disadvantage that blocks used to consume a lot of energy is minimized in the POS mechanism.
- Low barrier to entry. Becoming a verifier does not require a large investment in equipment, only an ordinary computer configuration.
- Highly decentralized.
- The decentralized nature of Staking is so high that it allows for a higher level of user participation.
Of course, POS also has its drawbacks. Because this consensus mechanism is not yet mature, more testing and refinement is needed.
Overall, the energy efficiency and high level of security are rare, and you can look forward to the future of the blockchain system after using this mechanism.
Especially, the energy saving point can dispel the worries of most companies who want to be energy-friendly and cannot use cryptocurrency channels for payment.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/pos-another-great-algorithmic-invention-in-the-age-of-technology/
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