- Proof of work (PoW) is a decentralized consensus mechanism.
- Bitcoin using peer-to-peer technology.
The cryptocurrency market is already in a downturn. The king of digital currency Bitcoin (BTC) is holding roughly 44% of the market share. When Bitcoin began to decrease, the entire crypto market collapsed. In this situation, the competitor of bitcoin changed its way from Proof of Work (PoW) to Proof of Stack (PoS).
“The Merge,” formerly known as Ethereum 2.0 with rising conflicts against high-energy efficient PoW mining, the PoS consensus chains are anticipated to improve transactions per second from 15 to approximately 3000 and will be launched soon.
PoW is a consensus mechanism in which miners seek to solve cryptographic puzzles and validate transactions in order to win block rewards. PoS utilizes a random selection of validators to ensure that the transaction is legitimate, with the validators getting rewarded in crypto.
The Reasons Bitcoin Doesn’t Move To PoS
Crypto investors and Bitcoin enthusiasts are raising the question of why Bitcoin doesn’t move from PoW to PoS?. The answer is here.
OSLO Freedom Forum panel explained the PoW vs PoS
1/ Why doesn’t #Bitcoin move from proof-of-work to proof-of-stake?— Namcios (@namcios) May 25, 2022
A panel yesterday at the Oslo Freedom Forum #OsloFF explained PoW vs PoS in the best way I’ve seen in a while.
A thread 🧵 with quotes 👇
Bitcoin is not following the traditional normal ledger system; it created a triple-entry (ledger), which self-audits and writes on the blockchain. It’s a permanent ledger entry that can’t be changed by anyone. That is the most advanced accounting technology ever invented by humans. The Bitcoin network will be stronger than the legacy. Without human control or government, PoW allows everyone to decide on the right ledger state.
They said that the PoS is
Basically, PoS relies on circular logic, where the largest coin holders determine the state of the ledger, and the state of the ledger determines who the largest coin holders are.
Also, they added that “Bitcoin, without energy, is like airplanes with the flight removed. It’s taking out the key innovation of what makes it so useful.
This is how SWIFT, PayPal, and all other normal banks are following PoS systems, these Stake systems are functional, but they are not depoliticized and they don’t let just anyone transact with them.