Ethereum: Is the proofs required in Bitcoin?
In terms of cryptocurrency, many people assume that Bitcoin and Ethereum are the same thing. One key difference between the two is the underlying technology and the mining process. In this article, we will examine whether Bitcoin needs evidence (POW) or whether there is a different consensus mechanism in the game.
What is the proof of work?
A certificate of work is a consensus algorithm that is used to validate transactions on the Blockchain network. It requires mining workers to solve complex mathematical equations so that they can be rewarded with a recently struck cryptocurrency. The process includes:
- Mining workers collect and check transactions in the block chain.
- They create a unique digital signature for each event through complex mathematical calculations.
- Mining workers compete to solve the puzzle that requires significant computational force and energy.
Why was the proof in Bitcoin introduced?
In 2009, Satoshi Nakamoto, Creator of Bitcoin, presented a work certificate as a means of encouraging miners to secure the network. POW’s most important argument is that it:
- Creates trust : by demanding miners to solve complex mathematics problems, the network becomes safer and more reliable.
- encourages innovation : Mining levels must be challenging enough to attract miners around the world, which increases innovation and improves the overall safety of the network.
Do Ethereum Need a Work Certificate?
Although a certificate of employment is a central part of Bitcoin’s consensus mechanism, it is not required for Ethereum. In fact, Ethereum has adopted a different consensus algorithm called
Certificate of stake (pos)
.
What is the indication of the stake?
At POS, validators are chosen to create new blocks based on the amount of encryption currency in their digital wallets. This process works as follows:
- Mining workers collect and check transactions in the block chain.
- They create a unique digital signature for each event through complex mathematical calculations.
- A minister with the most coins in his wallet is chosen to validate the block.
Is Ethereum POS more effective?
One of POS’s advantage over POW is that it requires significantly less energy to work. It is estimated that Ethereum uses about 50-60 terawatt hours (TWh) electricity per year compared to Bitcoin’s 100-200 TWh. This makes Ethereum a more environmentally friendly alternative.
conclusion
In summary, even though Bitcoin introduced a work certificate as a way to create trust and encourage innovation, it is not required for Ethereum. Ethereum has taken a certificate of (POS) as a consensus algorithm that offers multiple benefits for POW, including reduced energy consumption. As the cryptocurrency scenery continues to develop, it will be interesting to see how these different algorithms are implemented and their effects on the overall safety and durability of the nets.
Sources:
- Coinesk’s “Bitcoin Mining”
- “Ethereum certificate for a permanent consensus algorithm, written by Cointegraph
- “The energy consumption of Bitcoin and Ethereum,” written by Cryptoslate