𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐏𝐫𝐨𝐨𝐟 𝐨𝐟 𝐖𝐨𝐫𝐤 𝐚𝐧𝐝 𝐏𝐫𝐨𝐨𝐟 𝐨𝐟 𝐒𝐭𝐚𝐤𝐞 𝐢𝐧 𝐁𝐥𝐨𝐜𝐤𝐜𝐡𝐚𝐢𝐧 🌐💡.

Blockchain Dapp builder | Tech Educator @CodeCrunch Tech School

Full Stack Blockchain  Developer | Building @coinTopper

This is possible because of blockchain technology.  Using blockchain we can make transactions without needing third parties or middlemen. Blockchain promises a future of transparency , decentralization and trustlessness.

Achieving this requires a robust consensus mechanism that ensures the integrity of distributed ledger. Consensus mechanisms maintain accuracy and security in transactions by validating and securing every transaction on the blockchain.

1) 𝐏𝐫𝐨𝐨𝐟 𝐨𝐟 𝐖𝐨𝐫𝐤 (𝐏𝐨𝐖):
Proof of Work is a method used in mining Bitcoin, the first cryptocurrency. In PoW, many miners compete to solve a hard math problem to verify a transaction.

The first miner to solve it adds the transaction to the blockchain and earns Bitcoin as a reward. Only one miner wins, so the energy used by others is wasted. This has led to concerns about PoW's high energy consumption and its impact on the environment.

2) 𝐏𝐫𝐨𝐨𝐟 𝐨𝐟 𝐒𝐭𝐚𝐤𝐞 (𝐏𝐨𝐒): 
PoS is a more energy efficient way to secure blockchain networks. Instead of having all validators compete to solve a complex problem.

PoS randomly picks one validator to confirm a transaction based on how many coins they hold and are willing to put up as collateral.

For example, Ethereum is switching to PoS and will require validators to stake at least 32 ETH. Being a validator offers rewards, but it also comes with risks.

If a validator makes a mistake or tries to cheat, they can lose some or all of their staked ETH. This encourages honest behavior and helps keep the network secure.

Both Proof of Work (PoW) and Proof of Stake (PoS) have their strengths and weaknesses. PoW is known for its security, while PoS offers a more environmentally friendly and potentially scalable option.

PoW is good for building trust in a decentralized system, but it uses a lot of energy, making it slow and expensive to participate in. On the other hand, PoS aims to reduce energy consumption and costs.

Have you ever imagined making secure transactions without the need for banks or any other third parties 🤔 ?