From 7b68723cf5d855c1876706170df41f59adf1c985 Mon Sep 17 00:00:00 2001 From: Justin Thomas Date: Sat, 8 Dec 2018 13:53:56 -0500 Subject: [PATCH] Add section on Blockchain Consensus Protocols (#31435) Add the two most well-known protocols, Proof of Work, and Proof of Stake. --- guide/english/blockchain/cryptocurrency/index.md | 8 ++++++++ 1 file changed, 8 insertions(+) diff --git a/guide/english/blockchain/cryptocurrency/index.md b/guide/english/blockchain/cryptocurrency/index.md index 005ba46f53..c829d7b05c 100644 --- a/guide/english/blockchain/cryptocurrency/index.md +++ b/guide/english/blockchain/cryptocurrency/index.md @@ -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)