Untitled Quiz

Study Notes

Examples include Litecoin, Ethereum, Monero, and Dogecoin.
PoW involves miners competing to solve complex mathematical problems to validate transactions and create new blocks.

PoS is a consensus algorithm used in blockchains to validate transactions through stake-based selection.
Initially suggested in Quantum Mechanic and further developed by Sunny King in the context of Peercoin.
Involves 'staking' a certain amount of cryptocurrency to become a validator candidate for new blocks.
Selection for validation is based on the amount staked along with additional factors like coin-age and randomization.
Coin-age focuses on how long a node has been a validator, rewarding older nodes with a higher chance to validate blocks, potentially leading to centralization over time.
Ongoing research aims to solve flaws and enhance viability for real-world transactions.
The 'Nothing at Stake' problem highlights a scenario where nodes can support multiple blockchains during a fork without penalties, risking consensus failure.
Notable PoS blockchains include Ethereum (Casper update), Peercoin, and Nxt.
Variants of PoS include Regular, Delegated, Leased, and Masternode Proof-of-Stake.

A consensus algorithm that utilizes memory or disk space instead of computation to validate transactions.
Demonstrates interest in a service through allocating storage, offering an alternative to PoW.
Focuses on the amount of storage rather than computational power, ensuring fairness for individual miners against large mining pools.

Nodes in PoW are called miners, while in PoS they are validators or forgers.
Mining capacity relies on computational power; validating capacity is determined by the stake in the network.
PoW creates new coins, while PoS does not create new coins but rewards validators with transaction fees.
PoW has high energy consumption compared to the low to moderate consumption in PoS methods.
PoW systems are vulnerable to 51% attacks; PoS is designed to prevent such attacks.

Transactions are collected into blocks for validation by miners.
Miners ensure transaction legitimacy by solving a proof-of-work problem—an intricate mathematical challenge.
First miner to solve the block's problem receives a reward, and successful transactions are logged in the public blockchain.
Technical aspects of mining involve inverse hashing to find a nonce, ensuring the cryptographic hash of block data meets specified criteria.

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