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Jaydip Patel
@jaydippatel83
𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐏𝐫𝐨𝐨𝐟 𝐨𝐟 𝐖𝐨𝐫𝐤 𝐚𝐧𝐝 𝐏𝐫𝐨𝐨𝐟 𝐨𝐟 𝐒𝐭𝐚𝐤𝐞 𝐢𝐧 𝐁𝐥𝐨𝐜𝐤𝐜𝐡𝐚𝐢𝐧 🌐💡.
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Jaydip Patel pfp
Jaydip Patel
@jaydippatel83
Have you ever imagined making secure transactions without the need for banks or any other third parties 🤔 ?
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Jaydip Patel pfp
Jaydip Patel
@jaydippatel83
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.
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Jaydip Patel pfp
Jaydip Patel
@jaydippatel83
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.
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Jaydip Patel pfp
Jaydip Patel
@jaydippatel83
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.
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Jaydip Patel
@jaydippatel83
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.
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Jaydip Patel pfp
Jaydip Patel
@jaydippatel83
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.
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Jaydip Patel
@jaydippatel83
PoS randomly picks one validator to confirm a transaction based on how many coins they hold and are willing to put up as collateral.
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Jaydip Patel
@jaydippatel83
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.
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Jaydip Patel
@jaydippatel83
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.
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