Thinking Crypto
@thinkingcrypto·193K subscribers·4.2K videos
What is Proof of Work (POW) and Proof of Stake (POS) - Crypto Knowledge
Posted
January 20, 2018
Views
10,078
Likes
83
Comments
12
Engagement
January 20, 2018
10,078
83
12
0.94%
Every word spoken in this episode is indexed. Type any phrase to jump straight to the moment it was said.
Type any word or phrase that may have been spoken. Click a result to seek the player to that exact moment.
Try a name, a topic, or a quoted line
5:28Now PlayingBoth are algorithms used to establish a consensus on the blockchain. Ways of securing the blockchain, Defense from DoS attacks.
Proof of Work
One of the first ways of securing the blockchain. Primarily used but not specific to cryptocurrencies
Accurate work and speed of Blockchain system depend on it.
Mining
Bitcoin is a proof of work currency. In order to get Bitcoin you need to mine it, solving block etc.
Requires a lot of time energy and money
Proof of Stake
Proof of stake is an alternative process for transaction verification on a blockchain.
Less about mining and more about validating
Unlike the proof of work system, in which the user validates transactions and creates new blocks by performing a certain amount of computational work, a proof of stake system requires the user to show ownership of a certain number of cryptocurrency units.
In the proof of stake system, blocks are said to be ‘forged’ or ‘minted’, not mined. Users who validate transactions and create new blocks in this system are referred to as forgers.
In order to validate transactions and create blocks, a forger must first put their own coins at ‘stake’. Think of this as their holdings being held in an escrow account: if they validate a fraudulent transaction, they lose their holdings, as well as their rights to participate as a forger in the future. Once the forger puts their stake up, they can partake in the forging process, and because they have staked their own money, they are in theory now incentivized to validate the right transactions.
Some POS cryptos include NEO, Cardano and Stellar Lumens
Sign up with Coinbase for Free to start investing in Bitcoin and get $10 free Bitcoin when you spend $100!
Easily purchase Altcoins such as Ripple XRP, Cardano and more on the Binance exchange
Get the Ledger Nano S to Safely store your Cryptocurrency! :
Buy directly from Ledger
Buy on Amazon
Mine Bitcoin and other Cryptocurrencies Daily with HashFlare! Free to sign up!
Mine Bitcoin and other Cryptocurrencies with Genesis Mining. Use code "he76Rc" and get 3% off every purchase
Help support the channel! Donations :
BTC - 3GPcKwB3UGML4UiYqZM6BYx7Nu5Dj7GKDD
ETH - 0x7929e49cabe8d95d31392eaf974f378b508da2f4
LTC - MWMhsyGX7tsTPGS2EtSCAWpy3ywCv25r6B
XRP - rDsbeomae4FXwgQTJp9Rs64Qg9vDiTCdBv Destination Tag - 35594196
Follow on Facebook
Follow on Twitter
Disclaimer - Thinking Crypto and Tony Edward are not financial or investment experts. You should do your own research on each cryptocurrency and make your own conclusions and decisions for investment. Invest at your own risk, only invest what you are willing to lose. This channel and its videos are just for educational purposes and NOT investment or financial advice.
Sentinel Indexing in Progress
Metadata and chapters are available. Claim extraction for this episode is pending.
All video content is delivered via YouTube embedded players in accordance with the YouTube Terms of Service. Sentinel provides research tools that promote discovery and accountability across political media.
