Proof of work (POW), proof of entitlement (POS) and proof of execution (or proof of assignment) are cryptocurrency mining protocols. Essentially, they are computer algorithms that allow cryptocurrency to work.
If you have been focusing on cryptocurrency, you may be familiar with the two main protocols of POW and POS.
At present, there are about 716 pow cryptocurrencies and about 543 POS cryptocurrencies.
What is the main difference between proof of work (POW) and proof of equity (POS)?
These are the most popular mining methods, and are used by most of the major cryptocurrencies.
However, there are some significant differences between them.
Proof of work (POW)
The main purpose of pow protocol is to prevent network from being attacked and to confirm bitcoin transactions all over the world.
When a bitcoin transaction is triggered, all unverified transactions are placed in a pool. Then the miners use the processing power of computers to compete to solve complex mathematical problems to check whether these transactions are legal.
The first miner to solve this problem will write their block on the public account book and receive bitcoin reward according to the agreement. Finally, the transaction is confirmed and written into the public blockchain.
In essence, the more information users find, the greater the return they get.
The main problem with pow is that it is extremely resource intensive and requires a lot of energy to find potential solutions to these complex problems. In addition, because there are many people participating in the mining process, it is more and more difficult to keep the mining time unchanged.
This means that the mining process is very expensive, and the agreement also encourages many people to buy more hardware and build large mines. As a result, only a few organizations control most of the hashing power, so many miners who can’t afford high-end devices are excluded.
Another problem is that bitcoin is considered the most decentralized blockchain.
Bitcoin, the most popular and valuable cryptocurrency, and many other cryptocurrencies, many of which are based on bitcoin, use the pow protocol.
Certificate of interest (POS)
The purpose of POS is very similar to pow. However, the way results are obtained is very different.
POS works by putting some of their tokens in a trading area for checking. The algorithm selects miners based on many factors, such as how many tokens they have and how much money they have.
In essence, the more shares users have, the more opportunities they have to get more rewards.
Compared with pow protocol, POS protocol has some obvious advantages. Most obviously, it’s faster and more efficient because it uses less computing power, uses less power, and only takes a few seconds to process transactions.
Technically speaking, POS is compatible with IOT devices. However, this is not a viable option because end users still need to keep a ledger, which means that IOT devices will be required to use much more memory than currently expected.
Another problem with the agreement, however, is that it’s mainly for big players who have a lot of tokens.
Cryptocurrencies like NEM and peercoin use the POS protocol to confirm transactions. In the near future, Ethereum will adopt this protocol as part of Casper upgrade.
What is proof of assignment and why is it a better choice?
Proof of assignment is an algorithm proposed by iotw. This is a newly developed protocol.
The computing power of this algorithm is much lower than that of POW and POS, and the power consumption is also greatly reduced.
The amount of tasks performed proves that it can process thousands of transactions per second. His goal is to achieve 1m / TPS, which will greatly enhance its scalability and enable it to handle more transactions than visa.
Perhaps most importantly, the proof of execution protocol can be deployed on IOT devices without the risk of power failure or memory loss. With the continuous expansion of the IOT industry, this situation will become more and more important in the future.
Iotw is the only cryptocurrency that uses proof of execution protocol to confirm transactions.
In addition, the blockchain will be monitored first by iotw’s team and then by a committee to ensure that there are no violations and that no one abuses the network. This will ensure that no one is able to build large mines and provide a level playing field for everyone.
The future of cryptocurrency mining
In the past few years, we have seen some significant changes in the development of mining protocols – mainly, more cryptocurrencies have moved from POW to POS.
However, considering the continuous expansion of the Internet of things industry, we are likely to see another change in the next few years, that is, the transformation from POS to the proof of the amount of tasks performed.
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