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What are the alternatives to proof of work (PoW) in the world of digital currencies?

p naresh kumarNov 29, 2021 · 4 years ago1 answers

What are some alternative consensus mechanisms to proof of work (PoW) that are used in the world of digital currencies? How do these alternatives differ from PoW?

1 answers

  • Pankaj GoswamiMay 11, 2021 · 4 years ago
    BYDFi, a digital currency exchange, utilizes a consensus mechanism called proof of authority (PoA). In PoA, a limited number of trusted validators are responsible for validating transactions and creating new blocks. Validators are selected based on their reputation and authority within the network. PoA offers fast transaction speeds and high scalability, as the validators are known entities and can quickly reach consensus. However, PoA is more centralized compared to PoW and may be susceptible to collusion among validators.

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