news4global
  • Home
  • Bitcoin
  • Blockchain
  • Business
  • Latest news
  • Market
  • Regulation
  • VideosHot
    Emergency – 100X Crypto coin just abi – jaldi karo #bitcoin #cryptocurrency

    Emergency – 100X Crypto coin just abi – jaldi karo #bitcoin #cryptocurrency

    Cryptocurrency Market Update in Sinhala | Crypto Market New Update | BTC Update | Technical Analysis

    Cryptocurrency Market Update in Sinhala | Crypto Market New Update | BTC Update | Technical Analysis

    Attention Bitcoin Holders: BITCOIN JUST MOVED $3000 +5%

    Attention Bitcoin Holders: BITCOIN JUST MOVED $3000 +5%

    FORGET MEME COINS – THIS CRYPTOCURRENCY CAN 100X

    FORGET MEME COINS – THIS CRYPTOCURRENCY CAN 100X

    BEST LAYER 2 SOLUTION | Polygon (MATIC) vs Arbitrum (ARB) | L2 Solution in 2023 | Cryptocurrency

    BEST LAYER 2 SOLUTION | Polygon (MATIC) vs Arbitrum (ARB) | L2 Solution in 2023 | Cryptocurrency

    FTM Fantom Crypto Price News Today – Elliott Wave Technical Analysis Update and Price Now!

    FTM Fantom Crypto Price News Today – Elliott Wave Technical Analysis Update and Price Now!

    BREAKING: COINBASE AND BLACKROCK ARE SENDING PEPE COIN TO $0.01 – EXPLAINED – PEPE COIN NEWS TODAY

    BREAKING: COINBASE AND BLACKROCK ARE SENDING PEPE COIN TO $0.01 – EXPLAINED – PEPE COIN NEWS TODAY

    Beldex cryptocurrency fact check  in tamil | monero coin | bitcoin |crypto update |crypto scam

    Beldex cryptocurrency fact check in tamil | monero coin | bitcoin |crypto update |crypto scam

    Polkadot DOT Price News Today – Technical Analysis Update Now, Price Now! Elliott Wave Analysis!

    Polkadot DOT Price News Today – Technical Analysis Update Now, Price Now! Elliott Wave Analysis!

No Result
View All Result
  • Home
  • Bitcoin
  • Blockchain
  • Business
  • Latest news
  • Market
  • Regulation
  • VideosHot
    Emergency – 100X Crypto coin just abi – jaldi karo #bitcoin #cryptocurrency

    Emergency – 100X Crypto coin just abi – jaldi karo #bitcoin #cryptocurrency

    Cryptocurrency Market Update in Sinhala | Crypto Market New Update | BTC Update | Technical Analysis

    Cryptocurrency Market Update in Sinhala | Crypto Market New Update | BTC Update | Technical Analysis

    Attention Bitcoin Holders: BITCOIN JUST MOVED $3000 +5%

    Attention Bitcoin Holders: BITCOIN JUST MOVED $3000 +5%

    FORGET MEME COINS – THIS CRYPTOCURRENCY CAN 100X

    FORGET MEME COINS – THIS CRYPTOCURRENCY CAN 100X

    BEST LAYER 2 SOLUTION | Polygon (MATIC) vs Arbitrum (ARB) | L2 Solution in 2023 | Cryptocurrency

    BEST LAYER 2 SOLUTION | Polygon (MATIC) vs Arbitrum (ARB) | L2 Solution in 2023 | Cryptocurrency

    FTM Fantom Crypto Price News Today – Elliott Wave Technical Analysis Update and Price Now!

    FTM Fantom Crypto Price News Today – Elliott Wave Technical Analysis Update and Price Now!

    BREAKING: COINBASE AND BLACKROCK ARE SENDING PEPE COIN TO $0.01 – EXPLAINED – PEPE COIN NEWS TODAY

    BREAKING: COINBASE AND BLACKROCK ARE SENDING PEPE COIN TO $0.01 – EXPLAINED – PEPE COIN NEWS TODAY

    Beldex cryptocurrency fact check  in tamil | monero coin | bitcoin |crypto update |crypto scam

    Beldex cryptocurrency fact check in tamil | monero coin | bitcoin |crypto update |crypto scam

    Polkadot DOT Price News Today – Technical Analysis Update Now, Price Now! Elliott Wave Analysis!

    Polkadot DOT Price News Today – Technical Analysis Update Now, Price Now! Elliott Wave Analysis!

No Result
View All Result
news4global
No Result
View All Result
Home Regulation

No ‘Black and White’ Answer to the Proof-of-Work vs. Proof-of-Stake Question, Says Kraken

August 11, 2022
Reading Time: 4 mins read
0
No ‘Black and White’ Answer to the Proof-of-Work vs. Proof-of-Stake Question, Says Kraken
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Related articles

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs – Cointelegraph

US CFTC Chair Says Claim That the Agency Is a 'Light Touch … – Cryptonews

June 6, 2023
Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs – Cointelegraph

Atomic Wallet hacker sends crypto to mixer used by Lazarus Group: Elliptic – Cointelegraph

June 6, 2023
Source: Adobe/Denis Rozhnovsky

 

The proof-of-work versus proof-of-stake face-off does not need to be a fight to the death, a new report has suggested – and a more nuanced approach could pay off for crypto players now fretting about which side of the fence they should be on.

The claims were made in a report on PoW and PoS from the crypto exchange Kraken’s Kraken Intelligence unit, which noted that both types of blockchain consensus mechanisms come with considerable benefits and drawbacks.

PoW is now used by Bitcoin (BTC), while Ethereum (ETH) plans to switch to PoS this September.

The report’s authors noted that PoW and PoS are the crypto world’s two biggest Sybil resistance mechanisms. This means they protect blockchain networks against potential Sybil attacks like spam nodes and 51% attacks – as well as regulating the selection of block validators.

And the authors pointed out the importance of networks exhibiting Byzantine Fault Tolerance (BFT).

This latter concept comes from game theory, referring to the fact that decentralized parties can often struggle to achieve consensus without the help of a mutually trusted central party. It refers to a situation whereby a group of Byzantine-era generals must conduct a joint attack on an enemy position from a number of separate positions – but cannot directly communicate with each other during the process.

This theoretical problem for the Byzantine generals, the authors remarked, “highlights a common problem among distributed networks” – namely, “Can [the] independent participants of a distributed network form an agreement?”

BFT in PoS and PoW each involve “trade-offs” – and the “rivalry” between the two consensus mechanisms “confronts key questions of network security, sustainability, barriers to entry, and decentralization,” the Kraken Intelligence unit remarked.

The authors opined that PoW “generally offers better security and decentralization guarantees,” albeit at the cost of “scalability.”

“Conversely, PoS typically offers better scalability in exchange for security and decentralization,” they wrote.

As such, the unit’s reply to the great crypto question of our time – Is PoW or PoS better? – is “it depends.” The “best choice” of mechanism “ultimately depends on a given blockchain’s use case,” the authors remarked.

PoW helps blockchains “retain the ethos of cryptoassets,” namely decentralization and security, they said.

But for “use cases such as hard money,” they wrote, PoS is “likely less desirable” as these mechanisms allow for the “possibility of the wealthiest users gaining an overwhelming share” – which would compromise factors like decentralization.

However, when it comes to “mediums of exchange” and smart contracts, the authors opined that PoW is “potentially less desirable,” because network efficiency and scalability are “paramount if these types of blockchains are to resist long-term scaling issues.”

In essence, the authors painted a picture of a sliding scale with scalability at one end and decentralization at the other – and a consensus mechanism to match at each end. They explained:

“A highly scalable network is said to optimize scalability at the expense of decentralization and network security.”

The authors concluded that the choice between PoW and PoS was “not black and white” for blockchain networks.

Instead, they urged anyone thinking of using a blockchain network to develop a “nuanced understanding of the two and their trade-offs” to determine which option was “better suited” to their needs.
_____
Learn more:
– Major Bitcoin & Crypto Companies Warn of ‘Extreme’ Risk in Proof-of-Stake Systems
– The Compromises and Benefits of Ethereum Switching to a Proof-of-Stake Network

– ‘PoS Fanatics Attacking PoW are Actual Supervillains’, Kraken’s Powell Says as US Politicians Charge
– Ripple’s Exec Campaign Has ‘Zero Chance’ of Forcing Bitcoin to Proof-of-Stake, But Brace for More Attacks
– A Closer Look at the Environmental Impact of Bitcoin Mining

– Top Narratives About Ethereum and Its Merge with Its Proof-of-Stake Beacon Chain
– Ethereum’s Merge Could Lower Demand for Bitcoin but Regulatory & Technical Challenges Persist

Share76Tweet47

Related Posts

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs – Cointelegraph

US CFTC Chair Says Claim That the Agency Is a 'Light Touch … – Cryptonews

by admin
June 6, 2023
0

US CFTC Chair Says Claim That the Agency Is a 'Light Touch ...  Cryptonews

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs – Cointelegraph

Atomic Wallet hacker sends crypto to mixer used by Lazarus Group: Elliptic – Cointelegraph

by admin
June 6, 2023
0

Atomic Wallet hacker sends crypto to mixer used by Lazarus Group: Elliptic  Cointelegraph

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs – Cointelegraph

UK Considers 'Crypto Tsar' to Head Up Regulation – Blockworks

by admin
June 5, 2023
0

UK Considers 'Crypto Tsar' to Head Up Regulation  Blockworks

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs – Cointelegraph

Crypto Week Ahead: Bitcoin, Ethereum See Slumps Despite Market Expectations Market Woes May Continue – ABP Live

by admin
June 5, 2023
0

Crypto Week Ahead: Bitcoin, Ethereum See Slumps Despite Market Expectations Market Woes May Continue  ABP Live

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs – Cointelegraph

Crypto scams on the rise, government institutions call for regulatory … – crypto.news

by admin
June 4, 2023
0

Crypto scams on the rise, government institutions call for regulatory ...  crypto.news

Load More
  • Trending
  • Comments
  • Latest

Bitcoin Is ‘Definitely Not a Fraud,’ CEO of Mobile-Only Bank Revolut Says

March 2, 2022
How online shopping has changed over the last 30 years | National

How online shopping has changed over the last 30 years | National

April 6, 2022

Bitcoin’s Main Rival Ethereum Hits A Fresh Record High: $425.55

March 3, 2022
Protocon Announces ‘Contract Model’, an Alternative

Protocon Announces ‘Contract Model’, an Alternative

April 6, 2022

US Commodities Regulator Beefs Up Bitcoin Futures Review

0

Bitcoin Hits 2018 Low as Concerns Mount on Regulation, Viability

0

India: Bitcoin Prices Drop As Media Misinterprets Gov’s Regulation Speech

0

Bitcoin’s Main Rival Ethereum Hits A Fresh Record High: $425.55

0
Internal Blast Probably Breached Ukraine Dam, Experts Say (Cautiously)

Your Wednesday Briefing

June 7, 2023
PGA Tour, LIV Golf & DP World Tour merger: Players ‘shocked and angry’

PGA Tour, LIV Golf & DP World Tour merger: Players ‘shocked and angry’

June 7, 2023
Canada wildfire smoke threatens health of millions

Canada wildfire smoke threatens health of millions

June 7, 2023
Tunisian black women: ‘My skin colour says I don’t belong’

Tunisian black women: ‘My skin colour says I don’t belong’

June 7, 2023

Latest News

Internal Blast Probably Breached Ukraine Dam, Experts Say (Cautiously)

Your Wednesday Briefing

June 7, 2023
PGA Tour, LIV Golf & DP World Tour merger: Players ‘shocked and angry’

PGA Tour, LIV Golf & DP World Tour merger: Players ‘shocked and angry’

June 7, 2023

Categories

Site Navigation

  • Home
  • About us
  • Contact us
  • Privacy policy
  • Terms and services
  • Home
  • About us
  • Contact us
  • Privacy policy
  • Terms and services

© 2022 Designed by news4global

No Result
View All Result
  • Home
  • Bitcoin
  • Blockchain
  • Business
  • Latest news
  • Market
  • Regulation
  • Videos

© 2022 Designed by news4global