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$title = "Why Proof-of-Stake (PoS) Is Better Than Proof-of-Work (PoW)";
$desc = "Either you have decided to enter the world of Blockchain technology, or you are just interested in knowing the mining process of blockchains, this article will help you out in both cases.";

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        <h2 class="mb-2">Why Proof-of-Stake (PoS) Is Better Than Proof-of-Work (PoW)</h2>
        <p class="mb-2">Before we move to the point of discussion, understanding the fundamentals of Blockchain technology is essential. It came into being when people felt that they do not want to depend on a third-party or intermediary for their transactions. Thus, the evolution of Blockchain technology allows the users to conduct their transactions directly with other members without the need of a third-party. That said, a decentralized and distributed system of Blockchain was built that changed the entire landscape of technology, financial, and non-financial transactions in the world.</p>
        <p>In order to make the transactions on Blockchain securer and more accountable, an effective way or mechanism was needed that would allow the members to perform mining to reach distributed consensus. Here come, two consensus mechanisms which are named as Proof-of-Work and Proof-of-Stake respectively. These mechanisms are basically the current requirements to confirm that the transactions on a Blockchain are secure and valid. In simple terms, miners place the transactions in a block which after achieving consensus is added to the ever-increasing chain. Hence, the term 'blockchain'.</p>
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                        <p class="mb-1"><strong>Understanding Proof-of-Work</strong></p>
                        <p>Proof-of-Work (PoW) is the first consensus mechanism, generally used by Bitcoin. In this mechanism, the nodes or users perform certain computing to add the block of transactions to the chain.Miners need to calculate a hash (signature)of the block following some particular requirements. Whoever finishes the computational workfirst will be rewarded with some amount of crypto-currency. This reward compels the users to carry out calculations quickly. Every cryptographic equation is different and unique, ensuring the security protocol of the system.Once the equation is solved, the entire network gets to know that the transaction is valid and authentic.</p>
                        <p>However, solving the mathematical computationrequires a lot of time, efforts, costs, and most importantly,energy consumption. These computational worksare quite difficult, eventually requiring heavy rigs for performance. Additionally, there is also a threat for centralisation-by-mining-pool.</p>
                        <p>This increasesthe necessity for a better mechanism that doesn't require so much time and money. Something that is faster and much cheaper than Proof-of-Work.</p>
                        <p class="mb-1"><strong>How PoS is better than PoW?</strong></p>
                        <p>Firstly, let's understand whatPoSis and how it actually works.</p>
                        <p>A new approach to block generation, PoSis based on the methods of 'user staking'. Like PoW, PoS also maintains the ultimate integrity and security of transactions where users are given incentives to validate other member's transactions. The aim is still the same just like the other blockchain's mechanisms, which is to achieve distributed consensus.However, the difference is to achieve a consensus for a block by placing bets or stakes on it.</p>
                        <p>Every usercan stake an amount of their cryptocurrencies on the block. Then, whoever gets selected to validate the blocks of transaction, gets the reward. Or in other words, when the block is added to the chain, the node who has placed a bet on it will be given reward. The process is completely secure and contains no counterfeit transactions as only an authentic block gets added to the chain. On the other hand, if some nodeis foundwitha fraudulent block, it gets penalized and the staked amount would be debited from its balance.</p>
                        <p class="mb-1">This method entirely depends upon the following idea:</p>
                        <p><strong><i>"Higher stakes in the Blockchain equals to louder voice"</i></strong></p>
                        <p class="mb-1">The biggest advantages of PoS are given below:</p>
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                        	<li> Users are not required to spend a lot of time and efforts to perform computationsso that they reach a consensus. Instead, they just place a bet on blocks.</li>
                            <li> Electricity costs and excessive energy consumptions are reduced inPoS mechanism.</li>
                            <li> High-performing computers are not needed to stake an amount.</li>
                            <li> A user only needs sufficient amount of tokens to stake and to be eligible to receive rewards.</li>
                            <li> With PoS mechanism, the networkbecomes fast, inexpensive, and more efficient as compared toPoW.</li>
                            <li> In PoS, every fraudulent activity is penalized. While, in PoW, duplicity can be ignored by other users in the network. This makes PoS a more accountable and secure model.</li>
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                        <p>To get a more vivid idea on whyPoS is a better model than PoW, have a look at thiscomparative representation:</p>
                        
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                                        <th scope="col">PoS</th>
                                        <th scope="col">PoW</th>
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                                        <td><strong>Doesn't require much time and efforts</strong></td>
                                        <td>Requiresexcessive time and efforts</td>
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                                        <td><strong>Doesn't need to solve large mathematical problems</strong></td>
                                        <td>Needs to perform heavy calculations</td>
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                                        <td><strong>Requires staking the amount of tokens to get a chance of being selected</strong></td>
                                        <td>Requires heavy rigs as difficulty level increases with computational power</td>
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                                        <td><strong>Cheaper than PoW</td>
                                        <td>Quite expensive</td>
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                                        <td><strong>Less electricity is consumed resulting in lower energy consumption</strong></td>
                                        <td>More electricity is consumed to compute resulting in excessive energy consumption</td>
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                                        <td><strong>Authenticity is encouraged, Unauthenticity is discouraged</strong></td>
                                        <td>Authenticity is encouraged but Unauthenticity is forgiven</td>
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                        <p>It is important to note that the users must have enough staking amount to place a bet on the block. The more bets a user places, the higher are their chances of being chosen and getting rewarded.</p>
                        <p>Now that you know that PoS is far better than PoW, are you ready to invest in Blockchain technology with PoS mechanism? If so, we advise you to opt for <a href="https://xinfin.org">Hybrid Blockchain Technology</a> – a game-changing technology consisting of both public and private state of network. It offers robust security and authentic transactions.</p>
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