Proof of Work vs. Proof of Stake: Beginner's Guide!! 👨‍🏫

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~~~~~
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Cryptocurrency Climate 👉 • FACT CHECK: Bitcoin Mi...
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Fastest Cryptocurrencies 👉 • FASTEST Cryptocurrenci...
~~~~~
- TIMESTAMPS -
0:00 Intro
1:51 Cryptocurrency Consensus Explained
5:51 What Is Proof Of Work?
10:24 What Is Proof Of Stake?
13:42 PoW: Strengths & Weaknesses
16:32 PoS: Strengths & Weaknesses
21:05 Conclusion: Which Is Better?
~~~~~
⛓️ 🔗 Useful Links 🔗 ⛓️
► Proof Of Work Vs Proof Of Stake: www.coinbureau.com/analysis/p...
► Proof of Work Explained: academy.binance.com/en/articl...
► Proof of Stake Explained: academy.binance.com/en/articl...
► In Favor of Proof of Work: www.danheld.com/blog/2019/1/5...
► In Favor of Proof of Stake: vitalik.ca/general/2020/11/06...
► Proof Of Work Cryptocurrencies: cryptoslate.com/cryptos/proof...
► Proof of Stake Cryptocurrencies: cryptoslate.com/cryptos/proof...
~~~~~
👨‍🏫Cryptocurrency Consensus Explained👨‍🏫
Consensus in cryptocurrency follows the same idea as consensus between people. The difference is it’s computers coming to a consensus AKA an agreement about whether a transaction is valid or not. Usually, the consensus threshold in cryptocurrency is more than half, or 51%
⛏What is Proof of Work?⛏
Any computer that wants to process transactions on a proof of work cryptocurrency blockchain like Bitcoin needs to solve a complex equation to earn the right to do so. This costs time and energy to do
If this sounds tedious and arbitrary, it’s because it is. This idea of work exists exclusively as a means of protecting a cryptocurrency from manipulation by the computers connected to its blockchain
💰What is Proof of Stake?💰
Instead of using large amounts of computing power and energy to solve an equation to process transactions, a cryptocurrency coin is staked i.e. locked on the blockchain to earn the right to do so
The length of time a cryptocurrency must be staked to process transactions can vary, as can the minimum amount of coins or tokens a computer must lock up as stake
Logically, the more cryptocurrency you stake, the more likely you are to process transactions and create a block
⛓PoW: Advantages and Disadvantages⛓
In theory, anyone can connect their computer to a proof of work cryptocurrency to process transactions and earn cryptocurrency as a reward for doing so
However, over the years companies have developed specialized computers called application specific integrated circuit machines or ASICs for short. This is gradually centralizing PoW cryptocurrencies
What’s worse is that when a new and improved ASIC is released, the older model usually ends up in a landfill, and this is one of the many environmental concerns about proof of work cryptocurrency mining
💱PoS: Advantages and Disadvantages💱
In theory, anyone can connect their computer to a proof of work cryptocurrency to process transactions and earn cryptocurrency as a reward for doing so
This is facilitated by the minimal hardware and energy requirements to participate in most proof of stake cryptocurrency blockchains
However, most proof of stake cryptocurrency blockchains have high thresholds when it comes to the minimum stake you need to put down to connect to it as an independent computer
Moreover, most proof of stake cryptocurrencies had something called a premine which is where a bunch of coins or tokens are minted in advance and distributed to the team and large investors
Consequently, most proof of stake cryptocurrencies are more centralized than Bitcoin and Ethereum since the average user is stuck delegating to a validator or staking pool belonging to the team and VCs
~~~~~
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.
#bitcoin #blockchain #consensus #staking #mining #pos #pow

Пікірлер: 848

@CoinBureau 3 жыл бұрын

Hope this overview is useful guys! Don't forget to follow me on some of my other social channels. We have some important updates in the pipes ;) 👉 guy.coinbureau.com/socials/

@rishabhjain109 3 жыл бұрын

Is Proof of History even better than Proof of Stake?

@kingkong7882 3 жыл бұрын

@@rishabhjain109 Did you ever ate stake before.

@cjj6412 3 жыл бұрын

Crypto is just a giant ClickFunnels source: am investment banker

@leeclayton5151 3 жыл бұрын

Keep calm and hodl on Guy. Great video again. Thanks for explaining the difference between the two methods

@Saikrishna-dz4wt 3 жыл бұрын

Please suggest a book to learn technical analysis from basics to pro level.Any online help also would be of great help

@yb7126 3 жыл бұрын

Welcome to coin bureau, the largest crypto channel in the whole inter-webs, add free, transparent and no clickbait titles like other (small) crypto channels ;) Finally!

@qinghualao7079 3 жыл бұрын

Bybit….bybit…..anyone wanna use bybit and get rekt?

@cryptohair 3 жыл бұрын

Ah the biggest crypto channel on the inter-webs.

@tomash9785 3 жыл бұрын

I was trying to scrape that hair off my screen

@alenalex95 3 жыл бұрын

And he dont brag like bitboy

@bryansutton9942 3 жыл бұрын

And best

@michaeltabone7085 3 жыл бұрын

In the war between bitboy and CB, it’s an easy choice

@HussoFPV 3 жыл бұрын

I've been waiting for this day for AGES! Grats Guy! Finally overtook that clickbait producer.

@stoempert 3 жыл бұрын

BitBoy can't handle this channel being the biggest 😂

@D3athW1ng 3 жыл бұрын

There's a channel called Bitboy? 😂 Funny, it never came up in my feed ... Wonder why? 😏

@nachocheezed 3 жыл бұрын

Which is why they shouldn't be mentioned at all:) Can't compare apples and oranges xD

@D3athW1ng 3 жыл бұрын

@@nachocheezed 😆

@lastcall8286 3 жыл бұрын

@@D3athW1ng he's for beginners when you get beyond I start learning and researching yourself you won't need that channel corn bureau is perfect

@D3athW1ng 3 жыл бұрын

@@lastcall8286 all good .. just teasing 😆

@alekgj5824 3 жыл бұрын

Congratulations!!! Your channel is the # 1 crypto channel, you passed BitBoy! Well done, you deservedly.

@qinghualao7079 3 жыл бұрын

Who’s bitboy? Sorry,I only looking for education channels

@Setiawan- 3 жыл бұрын

@@qinghualao7079 you can search with word Benjamin bitboy

@fitnessforever247 3 жыл бұрын

Thanks Guy..please do a vid on the 'Types of Pos' we have in the space and explain in a nutshell how they work/are secured nd the differences between them.. E.g Pos , SPos , NPos , PPos etc. You can explain concepts of each and match some examples to them 🌟🙏🏆

@petrasvizbaras5704 3 жыл бұрын

dont be shy its the best content u can find on youtube

@fuzzyivory3865 3 жыл бұрын

My guy is doing god's work in terms of education. You make lengthy content that's easly digestible even for folks like me that have a low attention span(ADHD), Cheers to the Coin Bureau team!

@slavenrasic2173 3 жыл бұрын

I guess the whole world has ADHD these days

@derekkearns3377 3 жыл бұрын

Only USA and western europe made up word for being bold

@Aforce90 3 жыл бұрын

I was just about to research this area, perfect timing. Big up the notification crew!

@lynxlagoon 3 жыл бұрын

hijacking this comment to make everyone aware that there is one project that managed to scale Proof of Work, while being energy efficient AND improving decentralization + security It's called Kadena and can do 480,000tps, why is no one talking about this?

@FIgirl2035 3 жыл бұрын

I’m new to crypto and still learning. Your channel is one of the main ones I watch to learn about crypto. This channel is excellent! I appreciate that there aren’t any ads interrupting at the most awkward times and I love how you explain things easily and clearly. Your crypto swag is 🔥 your crypto rhymes are 🔥 Thank you for providing all of this awesome info!!

@rammachiraju 2 жыл бұрын

PoS system leads to centralization and can impact it's core protocol due to this type of centralization. With PoW people like you say miners equipment is expensive and it gets centralized. But miners do not have any special powers to control the BTC protocol. They just create and provide a block to the nodes and keep network secure. If nodes do not accept it, they can't do anything. Miners are more like service providers to Bitcoin where nodes are the actual users/participants or bitcoin. Same with protocol changes. Miners can't do shit without majority of nodes agreeing. The more participants we have running simple nodes, the more resilient the network is thereby providing true decentralization. When blocksize war happened majority miners wanted to change block size but failed coz nodes didn't accept it. All you need is a node to participate in any changes proposed. It's super easy to run Bitcoin node due to the size of block and transactions are account to a simple ledger. That's why it stays easy in future. Unlike application blockchains like ETH where it'll get increasingly harder and harder to run a full node. But anyone can run a node with simple hardware on Bitcoin now and in future. That's how BTC stays truly decentralized.

@Alan-vo4br 3 жыл бұрын

I'm actually glad he got number 1 crypto channel, defo deserves it

@sylviabells8224 3 жыл бұрын

Yes Alan....how are you?

@JYTE21 3 жыл бұрын

Congrats,... the largest crypto channel by subscribers. :) Btw, BitBoy might not like this so much. 😂

@Ollieharper3 3 жыл бұрын

And well deserved too

@theworldtoday1636 3 жыл бұрын

Quality content here only 👌👌👌

@CryptoJoeTrading 3 жыл бұрын

Congrats I have been watching you for years always deliver on point messages

@fabianrojas9028 3 жыл бұрын

GUY the ONLY youtuber that really cares about u and not about that sweet commission from referral links

@fabianrojas9028 3 жыл бұрын

@Ninja Eyes I know, but it’s not on ur face and he barely mentions the referrals

@junipersnow1 3 жыл бұрын

Haha...but there is a well organized and impressive Team behind guy, the guy who does referrals and timestamps is on it for sure...lol

@evanmichaels6156 3 жыл бұрын

No Adds or sponsors - so they monetize under the hood, 100% OK

@ronakio 3 жыл бұрын

Congratulations Guy. You're number 1!!!

@atultiwari4750 3 жыл бұрын

This GUY is crazy...I don't understand how he gets & understand such complicated information & makes it so easy to understand for beginners like me

@NicolasGanea 3 жыл бұрын

Thank you you guys are back! Glad you guys got your youtube account back

@grantsteel1050 3 жыл бұрын

Thanks Guy, very informative! Well delivered as usual.

@ChrisCEdwards07 3 жыл бұрын

Congrats on being the Biggest crypto channel on KZfaq! You deserve it man! Super happy for you!

@sylviabells8224 3 жыл бұрын

I agree wt you Chris

@niconoire 2 жыл бұрын

Adoption of "improvements" should be a slow and tedious process. The "improvement" in question should only be adopted if its value proposition is so compelling that it can inspire consensus among the many disparate actors forming the network.

@doubledown9 3 жыл бұрын

Fantastic as always! Extremely comprehensive!

@ebertenor 3 жыл бұрын

honestly this is one of the more useful vids

@chythompson1222 2 жыл бұрын

You and Thoughty2 are the only people I have subscribed to in the last couple years. I figure posting this here will help spread his videos and I will mention you on his channel. Much love

@jjemsnd7 3 жыл бұрын

That was excellent very well explained it's something I didn't understand and I have a better understanding of it now thank you

@canadiancorn8594 3 жыл бұрын

Want to give props to your AV, guy… very professional work. Do you have any videos that discuss the possible implications of quantum computation on the future of the network security? You have a way of making these “technical” things make more sense.

@otc0076 3 жыл бұрын

I knew you'd be able to break it down the best thx

@conra9560 3 жыл бұрын

Excellent explanation as always 👍 Could you do DAG vs “zero” knowledge proof?

@connie1070 3 жыл бұрын

EXCELLENT VIDEO!!! Thank you, you explained this process in a manner that even I can understand how it works. Well done sir!

@preetisahani6417 3 жыл бұрын

Guy love your vids. Always get excited whenever your videos get uploaded 🙂

@PuI2ePLaYaZ 2 жыл бұрын

Very educational... very thankful for the knowledge earned from watching this video Mr. Guy. Thank You!

@AsianSensationz 3 жыл бұрын

I hope this means you got your account back! Good to have you

@terrencealford4604 3 жыл бұрын

Great tutorial Guy! Thanks

@tomd5678 3 жыл бұрын

Good to see you back

@khanu.s.a6091 2 жыл бұрын

Thank You for an excellent and easily understandable description and explanation of Proof of Work v.s Proof of Stake Consensus Mechanisms. Despite being concise you present information with such good examples that it makes it very convenient to grasp the basic concept of Blockchain and Crypto technology. No wonder your subscribers are increasing day by day and that is good to see.

@sjorsbertrand 3 жыл бұрын

How do you manage to make a video about a subject I want to learn more about every single time? Keep up the great work!

@ondemandtraders3009 3 жыл бұрын

Hi there, Your content is incredibly valuable and I highly thank your efforts for providing quality education.

@eddymoffis8396 3 жыл бұрын

Trading systems allow you to limit the factor of emotional influence on decision-making,

@collinsjade845 3 жыл бұрын

as well as to give the trade a certain degree of systemic character.

@paulkelvin7163 3 жыл бұрын

This is very correct.

@paulkelvin7163 3 жыл бұрын

To the newbies, you should also note that this data is worthless without an existing understanding of data analysis,

@paulkelvin7163 3 жыл бұрын

Nothing interests me than talks about Bitcoin and how to make money trading forex.

@kumarsooraj9488 3 жыл бұрын

you will understand when you have a good coach like expert Eric Campbell.

@peNNayWyze 3 жыл бұрын

Congratulations on becoming #1 in the Crypto KZfaq space you passed Bitboycrypto

@HobbitJT 3 жыл бұрын

Excellent content, really like the way you’ve explained with easy to understand examples

@Chatbox_of_ANTI-CHEF 3 жыл бұрын

Do you trade, hold , margin trade or future trading bitcoin or any other ? and your comment is nice

@erickmandianez 2 жыл бұрын

Amazing video!!! congrats. learning a lot from your videos.

@ehern87 2 жыл бұрын

Always love getting financial advice from Guy!

@chloeevans6752 2 жыл бұрын

Not financial advice! 🤣

@aryan3229 3 жыл бұрын

Simple. POW and POS are Sybil mechanisms. Sybil mechanisms are used to prevent people from creating multiple identities and take over the network. POW uses hash power, POS uses stake power as a limited resource.

@aryan3229 3 жыл бұрын

And also, POW and POS are not consensus mechanisms. They are Sybil Resistance mechanisms.

@AP-ur2yy 7 ай бұрын

The explanation is amazing. The way you broke it down and pieced it back together made me go ooooooh okay

@TheeSeer 2 жыл бұрын

Guy thanks for helping a Newby like me to understand this complicated adventure. PS: I saw that you are a music fan as I noticed your Recording Studio in another of your videos. I am a Vocalist and former Agent and spent time in the UK in the 1980's

3 жыл бұрын

Congratulations Guy for being the biggest crypto youtube channel!!!

@nikolai9851 3 жыл бұрын

YOU DO GREAT WORK!

@hatbabai427 2 жыл бұрын

I no longer binge-check prices, instead I enjoy learning from this channel Valuable stuff

@Infinitbe 3 жыл бұрын

Great content as always, and congrats for the lead 🏆

@lemenace17 3 жыл бұрын

That jacket is like something from a fortnite skin. Looks awesome!

@Floorguy1000 3 жыл бұрын

As the BTC highest use case is as an asset, it is critically important to keep it with the most secure validation method. I like that it keeps to proof of work ....for now anyway...lol.

@derek.seaborn 3 жыл бұрын

I agree 100%. Proof of work is critical to bitcoin. I’d most likely sell all my bitcoin if it moved to PoS, which I don’t see happening.

@sylviabells8224 3 жыл бұрын

Do you mind if I introduce you to a more reliable and profitable investment company where I invest and earn 50% rate everyday?

@xaeon_thesandbox 3 жыл бұрын

Great vid as always!

@mrmike2063 3 жыл бұрын

Thank you for the info sir

@first2becheesedgrimberg6 3 жыл бұрын

Always a great guy for guides

@RRMM77 3 жыл бұрын

Muchas gracias amigo guy.

@Joker3515 3 жыл бұрын

Another great video! Thanks Guy!

@tottibrotta4247 2 жыл бұрын

GREAT content! Thanks!

@kriswillman2779 3 жыл бұрын

The information on here is top notch. Very easy to digest even for newbies.

@AlexFurusa 3 жыл бұрын

Guy my guy. I was actually looking for this and you happened to be posting it today.

@popsmokereal5902 3 жыл бұрын

Same

@davidmvg216146 3 жыл бұрын

Always the best content in the space

@martinlong2804 3 жыл бұрын

Brilliant, well explained thanks

@dimanyc2004 3 жыл бұрын

Great stuff, as always. I just took a few pages of notes from this video. Would be cool to see a comparison of PoS vs. DPoS some day. Thx, Guy!

@sylviabells8224 3 жыл бұрын

@I-done-did-it 3 жыл бұрын

Unless I’m mistaken, in 🇬🇧, interest earned on staking is classed as income, not capital gains. The same as airdrops on the day you receive them.

@muhario1 3 жыл бұрын

Quality content as usual 🙌🏾🙌🏾

@dominikschwarz4420 3 жыл бұрын

Thanks for your work.

@madslug7139 3 жыл бұрын

Thank you! Great as all ways!

@Buksdorf 2 жыл бұрын

these videos are my heart and soul on crypto. thanks Guy

@evanmichaels6156 3 жыл бұрын

80,000 more subscribers than Bitboy!!

@luluberry3730 2 жыл бұрын

His explanation is really really good.

@agostinhoserra 3 жыл бұрын

Nicely explain!

@derek.seaborn 3 жыл бұрын

It’ll be interesting to see how well proof of stake holds up when huge amounts of money are at… stake. In other words, in my opinion PoS has not been proven to be effective.

@lynxlagoon 3 жыл бұрын

PoS will get attacked, it's not secure and or battle tested like PoW, we need to scale PoW, and there is only one project that managed to do that, kadena.

@SirZanZa 3 жыл бұрын

@@lynxlagoon POS will cost a lot of money to attack. it isn't going to happen. PoW has been hit countless times with 51% attacks.... name i time PoS has been forced to do a hard fork because of hacks/attacks?

@allenwu1261 3 жыл бұрын

Cardano has held up with 20-40 billion USD worth of stake (70+% participation) for quite a while now. It's definitely very difficult to do, so skepticism is reasonable imo. IOG had to publish so many papers to have all the known attack vectors sorted out and peer reviewed to be sure they did not miss anything. But the cost efficiency of PoS potentially working is definitely worthwhile to explore.

@enriquellerena4779 3 жыл бұрын

Best crypto channel by far. Congrats 👍

@danielschulz9304 3 жыл бұрын

Great analogy, cheers

@davidumason5424 3 жыл бұрын

Perfect disclaimer, thank you very Guy. your up to date crypto education has mine a crypto geek out me.

@Chatbox_of_ANTI-CHEF 3 жыл бұрын

Do you trade, hold , margin trade or future trading bitcoin or any other ? and your comment is nice

@FeistyJackball 3 жыл бұрын

Appreciate all your efforts!

@sylviabells8224 3 жыл бұрын

Hello Christopher

@porkchopking656 3 жыл бұрын

Love your work guy 👍

@PaulStephenson003 2 жыл бұрын

Thank you for sharing. subscribed

@melaniemunoz2003 3 жыл бұрын

Congrats! Yours is officially the largest crypto channel on the KZfaq platform. Some other channel can no longer make that claim.

@ChrisCEdwards07 3 жыл бұрын

I told that other channel he needs to change his intro now haha

@melaniemunoz2003 3 жыл бұрын

He does otherwise he would be spewing a lie, lol!

@ferhana4036 3 жыл бұрын

upvoted for not mentioning the name of the competing channel.(no need to advertise that here) Guy and the Coin Bureau are at much higher level and deserve to be the top crypto channel.

@goldengold8568 3 жыл бұрын

Highest quality content indeed.

@Phantastikal Жыл бұрын

Amazing explanation with everyday examples

@kehmesis 3 жыл бұрын

#1 crypto channel. Congrats!

@adameskow562 3 жыл бұрын

such good content. thank you!

@moecom8540 3 жыл бұрын

u r the best ! thanks bro

@littlelauchie 3 жыл бұрын

Just love your videos. It makes me feel so smart when I actually follow along with things

@craks594 3 жыл бұрын

Wow i just realised we are now the biggest crypto KZfaq channel🥳 Congratulations, guy 💯% deserved

@mgreek31 2 жыл бұрын

Thanks for the news

@DisplacedPanda 2 жыл бұрын

I think this video was awesome, but I think that addressing Proof of Storage would also be very interesting. Love you work

@kashifsingh791 3 жыл бұрын

Awesome vid, Guy

@toddelphick9965 2 жыл бұрын

Great informational video.

@jjbeatz5025 3 жыл бұрын

Congrats on being the largest crypto KZfaq channel bro passed bitboy

@davemansfield713 3 жыл бұрын

Best explainer ever!

@sylviabells8224 3 жыл бұрын

Yes it's

@collectiblejohn1432 3 жыл бұрын

New to crypto, love the starters guilds!

@jamespedro8535 3 жыл бұрын

Hi John I care to tell you everything you need to know about cryptocurrecy. If only yo7 don't mind

@arcanine_059 2 жыл бұрын

Excellent explanation of PoW and PoS without taking a bias approach. You showed each side's pros and cons and for that you deserve my like and subscribe.

@rammachiraju 2 жыл бұрын

@s3g4_21 Жыл бұрын

Not at all. PoS is just a scam

@jamessierra119 3 жыл бұрын

Nice tips 100% sure!

@vineetbrahmankar3039 3 жыл бұрын

i didn't understand all the key points in first view. I had to watch the video twice but that's ok absolutely worth watching. Thanks for such videos Guy. 👍🏻

@PesoSmartPH 3 жыл бұрын

The biggest crypto channel in the interwebs!

@Emrico35 3 жыл бұрын

BIGGEST Channel in ALL INTERWEBS!

@mdshahbazkhan8095 3 жыл бұрын

I was waiting for this day. Many congratulations on being the largest crypto channel in all the interweb. Please share it on twitter so the fans can acknowledge