Open AccessComparative Study of Proof of Work (PoW) and Delegated Proof of Stake (DPoS) Blockchain Consensus Algorithm
Author(s) -
Nithish Kumar R
Publication year - 2021
Publication title -
international journal for research in applied science and engineering technology
Language(s) - English
Resource type - Journals
ISSN - 2321-9653
DOI - 10.22214/ijraset.2021.36425
Subject(s) - proof of work system , blockchain , cryptocurrency , computer science , database transaction , computer security , proof of concept , consensus algorithm , algorithm , database , operating system
As opposed to the current system, that is controlled by a central authority, blockchain was invented by Satoshi Nakamoto in 2008 as a distributed ledger system. A major development in the technology came with the introduction of virtual cryptocurrencies where transactions were recorded and verified by miners or validators at various nodes in different locations. Since these transaction records are available to everyone, this solved the current problem of excessive double spending. In a decentralized system like blockchain, a reliable mechanism was necessary to verify the integrity of all transactions. This led to the introduction of a variety of consensus mechanisms. This paper presents the results of a comparative study between Proof of Work and Delegated Proof of Stake, both of which have been widely used in Blockchain projects recently. Based on the above, this study will primarily discuss a brief explanation of the workings of both algorithms, comparisons between them, and various factors impacting these algorithms from a crypto currency standpoint.