Critical Thinking

Probability Work; which relies on energy use. ·

Probability of attacks and Energy consumption

·       
PoS is more environment
friendly because it has a minor fence to entry for block generation rewards, it has more energy efficiency
benefits, the amount of electricity needed to process the blockchain is greatly
reduced. Proof
of Stake currencies can be several thousand times more cost effective than
Proof of Work; which relies on energy use.

·       
The ratio of attacking a POW system is
higher than the ratio of attacking PoS system. In PoW, 51% of computational
power is required by an attacker to attack the network but in PoS the probability of 51% attack will
be decreased because, it means having a vested stake “balance” within
the network so attacking the network would not be in the user’s best interest
since they will have to own 51% of the network to attack it, which costs nearly $5 billion dollars, to hack bitcoin. This can be made possible if some
of the largest mining pools join together to attack the network. While this is
highly unlikely politically, technically, it is still a possibility.

·       
Most
of the problems in POS are all because of the nature of protocol as it is not
aware of anything except for its blockchain.

·       
There is an outer factor in POW that is specifically the
measure of computational work involved to find a solution.

·       
Nothing goes physical in proof of stake, “fixing” the
blockchain in reality. Therefore one can see PoS as more vulnerable to attacks.Protocol’s  “Equality”

·      
In POW a minor with fraction of F of total computational
power Q (F/Q) can win the reward and generate a block with probability p.

·      
In POS the individual stake
holder who has F of fraction of the total number of coins D in a flow can
generate a new block with probability p.

·      
POS is always concern with the
original holders of coins who will not have inducement of releasing their
coins to third party, because the coin balance will straight away contribute in
their wealth.