Blockchain concepts explanation for beginners – Shivaraj Patil
What is Proof of Work (PoW)?
A Proof-of-Work system is a consensus(general agreement) mechanism. It secures DOS attacks and other spam on a network by requiring some work from the service requester, usually meaning processing time by a computer. Bitcoin is a popular cryptocurrency that uses this mechanism.
What is Proof of Stake(PoS)?
The more staking coins a person holds, the higher the chances of being picked as a block validator.
What is Delegated Proof of Stake (DPoS)
All stakeholders(holds coins) will have a number of votes based on how much coins they hold which they will vote for a few delegates that will secure the network on their behalf. These delegates are responsible for achieving consensus during the generation and validation of new blocks. the rewards collected by the delegates are proportionally shared with their respective electors.
If an elected node misbehaves or does not work efficiently, it will be quickly expelled and replaced by another one.
Forks
There are 2 types of forks Soft fork and Hard fork
1. Soft fork
It’s simply an upgrade or update in the existing protocol like any other software, in this type of fork nodes that have not upgraded to the new protocol can still produce nodes in the blockchain unless they don’t break the new protocol rules.
Example: If in the new upgrade block size is reduced 3MB -> 2MB then if the old node tries to push 3MB block it will be rejected.
2. Hard fork
Upgrade or update in the existing protocol which is incompatible with the old protocol.
Planned Fork: In this type of fork nodes will be upgraded to the new protocol and the old chain will be left behind.
Controversial Fork: In this type of fork, 2 communities will believe in different protocols and follow the protocol they belive and a new chain will be created form the old blockchain meaning creating a new coin. Since it’s copied from the old blockchain users will get free coins of the newly-created coin. Both old and new chain will continue as 2 separate blockchains.
Example:
Published at Mon, 23 Dec 2019 04:37:50 +0000
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