gaspersic/freeCodeCamp
1
0
Fork 0
Code Issues Pull Requests Projects Releases Wiki Activity

Add section on Blockchain Consensus Protocols (#31435)

Browse Source 
Add the two most well-known protocols, Proof of Work, and Proof of Stake.
This commit is contained in:
Justin Thomas
2018-12-08 13:53:56 -05:00
committed by Christopher McCormack
parent 5e4ce8bb70
commit 7b68723cf5
1 changed files with 8 additions and 0 deletions
Download Patch File Download Diff File Expand all files Collapse all files

8
guide/english/blockchain/cryptocurrency/index.md
View File

@ -113,6 +113,14 @@ Artist have to deal through intermediaries to get your work sold. This can be so
There are many more ways that cryptocurrency is changing aspects of our lives; ranging from economic to social. As crypto gains popularity more and more uses will come into the world of Cryptocurrency.
## Consensus Protocols:
#### Proof of Work:
In this more well-known protocol, miners compete with each other to solve a math problem first and to be rewarded with a cryptocurrency reward for their work in securing the network. When a math problem is solved, a new block full of transactions gets added onto the blockchain. Bitcoin operates on a proof-of-work algorithm.
#### Proof of Stake:
In proof of stake, the network is secured via network participants staking or wagering their coins. If network participants misbehave, they will lose the coins that they staked. As a reward for properly securing the network, stakers will periodically receive a small amount of coins relative to how many coins they put up for staking. Instead of competing to solve a difficult math problem to validate blocks, block validators under proof of stake are randomly chosen. Proof of stake is typically significantly less energy-intensive than proof of work.
### Background History on Origins of Cryptocurrency:
[Blockchain Origins Story](https://www.activism.net/cypherpunk/manifesto.html)