CRYPTO ACADEMY SEASON 3 BEGINNERS' COURSE - HOMEWORK POST FOR TASK 4: DIFFERENT TYPES OF CONSENSUS MECHANISMS

2개월 전

WHAT IS THE DIFFERENCE BETWEEN POS AND DPOS? ADVANTAGES AND DISADVANTAGES? NAME A FEW BLOCKCHAIN PROJECTS WHICH USE THE DPOS CONCENSUS MECHANISM AND INDICATE THE SCALING CAPACITY?

INTRODUCTION

In a decentralized blockchain, consensus algorithms ensure that we have valid and organized blockchain running smoothly without disruptions and or collision.

WHAT IS THE DIFFERENCE BETWEEN POS AND DPOS?

DPOSPOS
There is delegation of influence. Stakeholders delegate their influence to other users which continue to use it as it remained delegated.There is no delegation of influence to another user.
DPOS has a higher scalability.POS has a lower scalability.
Since DPOS engages the social system fully, it can be said that it is the most decentralized consensus.It can be said that POS is less decentralized than DPOS.
The delegates who are active can be voted into their positions to validate.No delegate is voted rather it is the stakeholders that have higher influence that takes the position to validate.
Because DPOS is relatively new when compared to POS, DPOS is not as popular as POS. In fact, many are still trying to understand it.POS is more popular than DPOS as it is considered to be the likely alternative to POW.

ADVANTAGES OF POS

  • POS enjoys much popularity as it is the likely sought out alternative to POW.
  • Since the stakeholders who has higher influence takes the position to validate, POS encourages one to hold more tokens.
  • You do not need expensive equipment for mining in POS, but simple devices and owning more tokens.
  • POS do not need high electric power to operate smoothly because it uses simple devices. So it is more energy efficient.
  • It is hard to attack the POS system because to do that, the user need to hold more than half of the tokens in the blockchain which is difficult.

DISADVANTAGES OF POS

  • Since the more tokens you have, the more influence you have, users with high stake can control the system to their own benefit. They might even exploit the miners.
  • Because of how the system is built, the users with higher stakes can gradually turn the system into a centralized system thereby defeating the aim of the blockchain system which should be a decentralized system.
  • The system favors those who have higher stakes, which means the users do not have equal power in the system and you know this is in contrast to the main objective or idea behind blockchain technology.

ADVANTAGES OF DPOS

  • It is good to note that DPOS has better scalability than some other consensus algorithm.
  • DPOS uses simple equipment, it does not require expensive equipment and large energy for mining.
  • One can say that DPOS is a more decentralized consensus algorithm in that the delegates who perform the roles are voted in, which also means if they are not living up to expectation, they will be voted out. Of course, this is similar to what happens in a democratic setting.
  • Because DPOS is a very decentralized system, it is not easy to attack the blockchain.
  • If you analyze the way DPOS is structured, you will notice that the system encourages social interaction among members and that enhances the beauty of the blockchain technology.

DISADVANTAGES OF DPOS

  • If you compare those who have very high stakes to those who have very low stakes, you will notice that users who have very low stakes also have limited influence when it comes to making decision in the system. That is also similar when it comes to accessing benefits.
  • Users with very high stakes can influence the system for their selfish goals.

FEW BLOCKCHAIN PROJECTS THAT USE DPOS AND THEIR SCALING CAPACITY?

  1. BitShares blockchain. It could process 100,000 transactions per second.
  2. Steem blockchain. It has handled 50,000 votes operation per second in real time in theory, but in practice, the blockchain has only scaled to 1,000 transactions per second in the wild.
  3. EOSIO blockchain infrastructure. The system is powered by EOS coin.

I am grateful to Professor @sapwood

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Hello ,
Thank you for taking interest in the 4th Task of the Beginners’ class. Your grades are as follows:

CriteriaCalculation
Presentation/Use of Markdowns1.5/2
Compliance with Topic2/2
Quality of Analysis1.2/2
Clarity of Language2/2
Originality2/2
Total8.7/10


Feedback and Suggestions
  • Good job on completing this task.

  • You had repeated some points in a different way.



Thanks again as we anticipate your participation in the next class.