Proof Of Work and Proof Of Stake Explanation
What Are The Differences Broken Down For The Beginner
We think knowing the difference between Proof of Work (POW) and Proof of Stake (POS) is important in understanding altcoins and how they function.
Our thanks to Guy for another concise Beginners Guide.
#bitcoin #blockchain #consensus
Proof of Work vs. Proof of Stake: Beginner’s Guide!! 👨🏫
70,541 viewsJun 24, 2021
1.12M subscribers
📲 Insider Info in my Socials 👉 https://guy.coinbureau.com/socials/ 🔥 TOP Crypto TIPS In My Newsletter 👉 https://guy.coinbureau.com/signup/ ~~~~~ 📺Essential Videos📺 Cryptocurrency Climate 👉 https://youtu.be/DidAwxWaDKI Cryptocurrency For Beginners 👉 https://youtu.be/VYWc9dFqROI Cryptocurrency Tax Tips 👉 https://youtu.be/EMNSwa_PkkA Fastest Cryptocurrencies 👉 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? ~~~~~ ⛓️ 🔗 Useful Links 🔗 ⛓️ ► Proof of Work Explained: https://academy.binance.com/en/articl… ► Proof of Stake Explained: https://academy.binance.com/en/articl… ► In Favor of Proof of Work: https://www.danheld.com/blog/2019/1/5… ► In Favor of Proof of Stake: https://vitalik.ca/general/2020/11/06… ► Proof Of Work Cryptocurrencies: https://cryptoslate.com/cryptos/proof… ► Proof of Stake Cryptocurrencies: https://cryptoslate.com/cryptos/proof… ~~~~~ 👨🏫Cryptocurrency Consensus Explained👨🏫 Consensus in cryptocurrency follows the same idea as consensus between people. The difference is it’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% ⛏What is Proof of Work?⛏ 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, it’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 💰What is Proof of Stake?💰 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 ⛓PoW: Advantages and Disadvantages⛓ 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 What’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 💱PoS: Advantages and Disadvantages💱 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 ~~~~~ 📜 Disclaimer 📜 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
SHOW LESS
20 CommentsSORT BY
Coin Bureau
Hope this overview is useful guys! Don’t forget to follow me on some of my other social channels. We have some important updates in the pipes 😉 👉 https://guy.coinbureau.com/socials/
41
stoempert
BitBoy can’t handle this channel being the biggest 😂
222
Ah the biggest crypto channel on the inter-webs.
240
Y B
Welcome to coin bureau, the largest crypto channel in the whole inter-webs, add free, transparent and no clickbait titles like other (small) crypto channels 😉 Finally!
114
Default Name
Y’all finna call me crazy but really think adding Baby Moon Wolf to your portfolio, this is really might just take over doge and shiba like they said. Yes it’s a memecoin, yes it has no use case, we get it. But the marketing is absolutely crazy, community is fun, the future plans are wild, and we always shill & chill together. Such a nice chill place during this market.
318
Allan Clayton
Poor Bitboy 🙁 Crying into his soy latte.
35
Melanie Munoz
Congrats! Yours is officially is the largest crypto channel on the YouTube platform. Some other channel can no longer make that claim.
16
JP Fragoso
Coin, you think Proof of Storage could be the solution? It has the hardware costs, true, but those replace both energy costs, and keep a fully decentralized network….
5
James Manolo
Congrats,… the largest crypto channel by subscribers. 🙂 Btw, BitBoy might not like this so much. 😂
79
Defi Dior
🍾Number 1 crypto channel #LFG🔥
14
Sokratis Kalodimidis
My guy is doing god’s work in terms of education. You make lengthy content that’s easly digestible even for folks like me that have a low attention span(ADHD), Cheers to the Coin Bureau team!
49
Collectible John
New to crypto, love the starters guilds!
5
A B C
Thanks Guy..please do a vid on the ‘Types of Pos’ we have in the space and explain in a nutshell how they work/are secured nd the differences between them.. E.g Pos , SPos , NPos , PPos etc. You can explain concepts of each and match some examples to them 🌟🙏🏆
5
Shaun Lilley
Its happened Guy, the Crypto YouTube CoinBureau has surpassed Bitboy on youtube subscribers, you now at 1.12m and Bitboy at 1.11m. The funny thing is in the last week all his new videos show all of the interweb not just YouTube, well done for being the number 1 Crypto Channel on the Tube, especially in such a short time, massive growth this year. 👌👍😁
92
Assad John
There is asic resistent PoW with Ergo(Erg)
8
Dav
Proof Of Work and Proof Of Stake Explanation
Check Out Our Crypto Privacy Site: CryptoGrizz.com