Two different consensus algorithms are used to reach distributed consensus in a blockchain network: Proof of Work (PoW), and Proof of Stake.
Evidence of work
Proof of Work (PoW), a system where miners compete to solve complex math problems. The first person to solve the problem is awarded a block to the blockchain. In return, they are rewarded with tokens. Mining is the process of solving complex mathematical problems. The hashes that miners must solve are known as hashes.
PoW has the main advantage that it can be used to secure and decentralize consensus within a blockchain network. Because miners compete to solve mathematical problems, it’s very difficult for one entity to control the network or manipulate it.
PoW also has its drawbacks. The main problem with PoW is the fact that it consumes a lot of energy in order to mine the hashes. To solve the hashes, miners must use powerful computers that consume a lot of electricity. This is costly and does not make the process environmentally friendly.
Evidence of stake
Proof of Stake (PoS), is a system where nodes are selected based on how many tokens they hold or their stake in the network. This means that the greater the number of tokens held by a node, the more likely they are to be selected to validate a transaction or add a block to the blockchain.
PoS has the advantage of being more energy-efficient than PoW in reaching consensus in a blockchain network. The nodes are selected based on how many tokens they have. This means that nodes do not need to be very powerful or use a lot of electricity. This makes it less costly and more eco-friendly.
PoS has another advantage: it is less vulnerable to a 51% Attack, which is an attack in which a single entity controls more than 51% the network’s mining power. This attack can be used to manipulate the blockchain. It is more difficult for one entity to obtain a sufficient stake in a PoS network to be capable of carrying out a 51% attack.
PoS also has its drawbacks. PoS is less centralized than PoW. Because the nodes that verify transactions and add new blocks are selected based on how many tokens they have, it is more likely that those with more influence and power will be the most powerful and influential. This can cause centralization and less decentralization.
PoW and PoS both allow for distributed consensus to be achieved in a blockchain network. However, they work in different ways. PoW is a secure, decentralized method of reaching consensus. However, it is expensive and energy-intensive. PoS, which is more centralized and energy-efficient, is more environmentally friendly and more efficient in achieving consensus. Each has its advantages and disadvantages. The choice of which blockchain network to use will depend on your specific goals and needs.