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This article mainly explains "what is the consensus mechanism of Etay Square". The content of the explanation in the article is simple and clear, and it is easy to learn and understand. Please follow the editor's train of thought. Let's study and learn "what is the Ethernet Square consensus mechanism"!

PoW (Proof of Work): workload proof mechanism

1. Basic principles

This is the consensus mechanism adopted by Bitcoin and the earliest. To understand it, it is simply "paid according to your work". You will be paid as much as you do (bitcoin and other cryptocurrencies). In the online world, the labor here is the computing service you provide for the network (computing time x), and the process of providing this service is "mining".

So how to distribute the "reward"? If it is a real mineral deposit, it is obvious that under the premise of uniform distribution, the proportion of people's "mining" is proportional to the arithmetic power provided by them, and the popular point is that the stronger the ability, the more they get.

two。 Advantages

The mechanism itself is of course very complex, with many details, such as automatic adjustment of mining difficulty and gradual halving of block awards, all of which are based on economic principles and can attract and encourage more people to participate.

Ideally, this mechanism can attract many users to participate, especially the more they participate first, which will promote the rapid development of the initial stage of cryptocurrency and the rapid expansion of the node network. In the era of Cpu mining, Bitcoin attracted a lot of people to participate in "mining", which is a good proof.

It is relatively fair to issue new coins through "mining" and distribute bitcoins to individuals (it is much fairer than those currencies that directly IPO without mining).

3. Shortcoming

First, computing power is provided by computer hardware (Cpu, Gpu, etc.). To consume electricity is a direct consumption of energy, which is contrary to the concept of human pursuit of energy conservation, cleanliness and environmental protection. However, if we have to find the meaning of "currency value" for "cryptocurrency", then this should be the strongest evidence.

Second, with the development of this mechanism, the provision of computing power is no longer a simple CPU, but gradually developed to GPU, FPGA, and even ASIC mining machines. Users have also developed from individual mining to large mining pools and mines, and the concentration of computing power is becoming more and more obvious. This runs counter to the direction of decentralization, and the security of the network is gradually threatened. There is evidence that Ghash (a mining pool) has launched a Shuanhua attack on gambling sites (in short, spend a sum of money twice).

Third, Bitcoin block rewards will be halved every four years, and when the cost of mining is higher than the mining revenue, people will be less motivated to dig, there will be a lot less computing power, and the security of the Bitcoin network will be further worrying.

PoS (Proof of Stake): equity proof mechanism.

1. Basic principles

This is the innovation of PPC. There is no mining process, the proportion of equity allocation is specified in the creation block, and then through transfer and transaction (usually IPO), it is gradually dispersed to the hands of users, and the new currency is added by the way of "interest" to realize the reward to the node.

To put it simply, it is a system of paying interest according to the amount of money held by the user and the time (age) of the currency. The most typical example in reality is stocks, or bank deposits. If users want to get more money, then open the client and keep it online, you can benefit from earning "interest" while keeping the network secure.

two。 Advantages

First, energy conservation. No mining, no need to consume a lot of electricity and energy.

The second is to be more decentralized. First of all, decentralization is relative. Compared with PoW-type cryptocurrencies such as Bitcoin, PoS cryptocurrencies basically do not require too much computer hardware, and everyone can dig mines (earn interest). There is no need to worry about the centralization caused by the concentration of computing power (51 per cent of the currency is purchased by a single user, which is more expensive), and the network is more secure.

The third is to avoid austerity. The cryptocurrency of the PoW mechanism may lead to deflation because of various reasons such as user loss, but the cryptocurrency of the PoS mechanism can effectively avoid deflation and maintain basic stability by adding money at a certain annual interest rate. After Bitcoin, many new coins adopt the PoS mechanism, and many old coins that use the workload proof mechanism also modify the agreement one after another, and the "hard fork" is upgraded to the PoS mechanism.

3. Shortcoming

Pure PoS cryptocurrencies can only be issued through IPO, which results in "a small number of people" (usually developers) getting a large number of very low-cost cryptocurrencies, and it is difficult to guarantee that they will not sell in large quantities in the face of benefits. Therefore, the credit base of the cryptocurrency of PoS mechanism is not solid enough. In order to solve this problem, many adopt the dual mechanism of PoW+PoS, issue cryptocurrency through PoW mining, and use PoS to maintain network stability. Or use the DPoS mechanism to enhance trust through community elections.

DPoS (Delegated Proof of Stake): authorized equity certification mechanism

1. Basic principles

This was first introduced by BTS. Bit shares put forward the idea of decentralized autonomous company (DACs) for the first time. The purpose of bitshares is to publish DACs. These uncontrolled companies issue shares, generate profits and distribute them to shareholders. You don't need to trust anyone to do all this, because everything is hard-coded into the software. The popular point is: bit shares create profitable companies (shareholding system), shareholders hold shares in these companies, and the company produces returns for shareholders. There is no need for mining.

For the cryptocurrency of the PoS mechanism, each node can create a block and earn "interest" according to the proportion of the individual's shareholding. DPoS is created by a trusted account elected by the community (trustee, the top 101st in the list of votes). In order to become a formal trustee, users have to canvass votes in the community to gain the trust of enough users. Users vote based on the number of cryptocurrencies they hold as a percentage of the total. DPoS mechanism is similar to joint-stock companies, ordinary shareholders can not join the board of directors, they have to vote to elect representatives (trustees) to make decisions on their behalf.

These 101 trustees can be understood as 101 mining pools, and the rights of these 101 mining pools are exactly equal to each other. Users with cryptocurrency can replace these representatives by voting at any time, as long as their computing power is unstable, the computer goes down, or they try to use their power to do evil, they will be immediately kicked out of the system by angry voters, while backup representatives can be topped at any time.

two。 Advantages

First, the energy consumption is lower. The DPoS mechanism further reduces the number of nodes to 101. on the premise of ensuring the network security, the energy consumption of the whole network is further reduced, and the network operating cost is the lowest.

Second, it is more decentralized. At present, for Bitcoin, personal mining is no longer realistic. Bitcoin's computing power is concentrated in several large mining pools, each of which is centralized, like a trustee of DPoS, so the cryptocurrency of the DPoS mechanism is more decentralized. The cryptocurrency of the PoS mechanism (such as the futuristic coin) requires the user to keep the client open. In fact, the user does not turn on the computer every day, so the real network node is maintained by several shareholders, and the degree of decentralization cannot be compared with the cryptocurrency of the DPoS mechanism.

Third, faster confirmation. For example, Eshu uses the DPoS mechanism, where the time of each block is 10 seconds, a transaction (after getting 6-10 confirmations) is about 1 minute, and a complete cycle of 101 blocks takes only 16 minutes. It takes 10 minutes for Bitcoin (the PoW mechanism) to generate a chunk and an hour for a transaction to be completed (after six chunks are confirmed). It takes about an hour for PoS to confirm a transaction.

3. Shortcoming

A few days ago, the author of bitstock published an article (see Resources) that was widely considered silly, predicting that both DAO (decentralized organization) and DAC (decentralized company) would fail. A great deal of practical experience is disclosed in this paper, which is basically a problem of DPoS. To sum up, they are as follows:

First, the enthusiasm for voting is not high. The vast majority of shareholders (90% +) have never voted. This is because voting takes time, energy and skills, which most investors lack.

Second, there are many difficulties in dealing with bad nodes. Community election can not timely and effectively prevent the emergence of some destructive nodes, causing security risks to the network.

Thank you for your reading. the above is the content of "what is the Ethernet Square consensus mechanism". After the study of this article, I believe you have a deeper understanding of what the Ethernet Square consensus mechanism is. The specific use of the situation also needs to be verified by practice. Here is, the editor will push for you more related knowledge points of the article, welcome to follow!

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