To Validate Transactions The Proof-of-Work (PoW) is a system that checks and verifies transactions on a Blockchain. The PoW miners compete against each other to solve complicated math puzzles and approve transactions. The first miner to solve the issue gets a certain amount of crypto coins. Examples of cryptocurrencies that use PoW are Bitcoin (BTC) and Dogecoin (DOGE).
Another popular consensus algorithm in blockchain networks is known as proof-of-stake (PoS). In PoS, validators are chosen to generate new blocks based on their stake in the network (i.e. how many coins they possess). This is in contrast to PoW mining, which requires miners to compete to solve hard math puzzles. The greater their cryptocurrency holdings, the better chance they have of being picked as validators to validate transactions or add blocks to the Blockchain. PoS is more efficient than PoW.
In this article, we’ll focus on three PoS Coins that are doing really well right now: Cardano (ADA), Ethereum (ETH), and Big Eyes Coin (BIG).
Ethereum: Moving to Proof of Stake
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Ethereum (ETH) is an open source, decentralized blockchain network that allows the development and implementation of smart contracts. It is known as the “Decentralized Ethereum Network”. Smart contracts are entirely coded and automatically fulfill all terms. Ethereum makes it easier to create decentralized apps (dApps) on their network due to the automation of smart contracts.
Ethereum, the second largest cryptocurrency after Bitcoin (BTC), initially ran on the PoW consensus system until September 2022 when it moved to PoS. This change was labeled “The Merge of the Century”. Ethereum’s energy efficiency improved by 99.9% when it switched to PoS for validating transactions. This decreased many of the criticisms about cryptocurrency’s high energy consumption due to PoW validation.
Cardano: Largest Proof-of-Stake Crypto Before Ethereum
Cardano (ADA) is aiming to provide a reliable and long-lasting platform for decentralized applications and smart contract creation. Before Ethereum moved to PoS, Cardano was the most traded PoS cryptocurrency with the largest market capital. This showed that a PoS system was possible.
Cardano uses a formal verification process to check the security and reliability of its smart contracts. Compared to other blockchain systems, Cardano networks should be more decentralized and sustainable.
Big Eyes Coin: Leave a Smaller Footprint than Dogecoin
