Kek. Proof of work vs. proof of stake. They're two systems for filtering out bad actors from a ledger system. The traditional solution is to have a trusted central authority to confirm transactions/earnings but that's vulnerable to jewery.
The idea of proof of work is that you have to sacrifice a bunch of resources (in this case time on expensive computers and electricity) in order to confirm transactions. If the network decides you're fucking around and reject your confirmations it means you wasted money. Unless someone controls more than half the computing power and half the electricity being used by the network, we can trust selfishness to ensure that the fastest confirmations are accurate. Or at least if they're not that the inaccuracy will be punished.
The idea of proof of stake is that you use some of your savings as insurance to guarantee your work. If the network agrees you did your job, then you get a reward. If they decide you fucked around, you lose some of your savings.
Broc_Liath 2 points 3.9 years ago
Kek. Proof of work vs. proof of stake. They're two systems for filtering out bad actors from a ledger system. The traditional solution is to have a trusted central authority to confirm transactions/earnings but that's vulnerable to jewery.
The idea of proof of work is that you have to sacrifice a bunch of resources (in this case time on expensive computers and electricity) in order to confirm transactions. If the network decides you're fucking around and reject your confirmations it means you wasted money. Unless someone controls more than half the computing power and half the electricity being used by the network, we can trust selfishness to ensure that the fastest confirmations are accurate. Or at least if they're not that the inaccuracy will be punished.
The idea of proof of stake is that you use some of your savings as insurance to guarantee your work. If the network agrees you did your job, then you get a reward. If they decide you fucked around, you lose some of your savings.