PoW vs. POS
A decentralized consensus method, PoS vs Pow, is used to approve transactions and add new blocks to a blockchain. A POS-powered network has the potential to benefit numerous industries, including financial services, health care, energy, and more, even if it is still in its infancy. Its advantages over conventional payment systems include cheaper energy costs, quicker transaction processing times, and enhanced privacy protection.
Despite the fanfare, PoW has its share of difficulties. Centralization, which happens when a few validators control more than half of the network’s entire mining capacity, is one of the more aggravating. A well-thought-out plan may require an intelligent contract to divide network resources fairly to prevent this.