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RE: Live Episode #35 A Miner's perspective, state of cryptocurrency mining! Ethereum, XMR, Zcash, Ubiq

in #ethereum • 7 years ago

What is the difference between POW and POS? how is it related to the difficulty issue?
Thank you....newbie in crypto

7 years ago in #ethereum by
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     7 years ago  

    POS does not use hardware for mining, it's more similar to having money locked up in a wallet that generates interest. So if ETH changes to completely to POS there will be no POW (no more hardware mining).

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     7 years ago  

    If so, who is going to do the necessary transaction?

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       7 years ago  

      Quote from ETH wiki:
      In general, a proof of stake algorithm looks as follows. The blockchain keeps track of a set of validators, and anyone who holds the blockchain's base cryptocurrency (in Ethereum's case, ether) can become a validator by sending a special type of transaction that locks up their ether into a deposit. The process of creating and agreeing to new blocks is then done through a consensus algorithm that all current validators can participate in.

      You can read the full article here: https://github.com/ethereum/wiki/wiki/Proof-of-Stake-FAQ