PROS AND CONS OF CONSENSUS ALGORITHM PROOF OF STAKE. DIFFERENCE IN THE NETWORK SAFETY IN PROOF OF WORK AND PROOF OF STAKE

Abstract

The consensus algorithm is a mechanism that allows you to protect the network against attacks. The work of the algorithm is to provide rules that act on the network members. Proof of Work is one of the consensus algorithms based on the calculation of a complex algorithmic problem. This algorithm requires significant computing power to maintain its performance and therefore is superfluous. An alternative algorithm - Proof of Stake does not require so many resources to maintain network performance, but has a number of shortcomings.

The article describes the main aspects of the work of consensus algorithms Proof of Work and Proof of Stake. Also described objectivity and the main requirements to the algorithms in terms of CAP theorem. The comparison between algorithms shows their vulnerabilities to attacks, the features of work and the strengths.

Key words: blockchain, cryptocurrency, consensus protocol, proof of work, proof of stake, PoW, PoS, mining, minting, Sybill attack, DDoS attack, blockchain fork, CAP theorem