Analysis on Blockchain Consensus Mechanism Based on Proof of Work and Proof of Stake

TL;DR

This paper analyzes the core blockchain consensus algorithms, Proof of Work and Proof of Stake, discussing their advantages, issues, and potential improvements to guide future research.

Contribution

It provides a systematic comparison of POW and POS, highlighting their strengths, weaknesses, and discussing safety and performance issues in blockchain consensus mechanisms.

Findings

POW and POS are fundamental to blockchain consensus.

Identifies current problems and proposes improvement ideas.

Discusses safety and performance considerations.

Abstract

In the white book of Bitcion, Satoshi Nakamoto described a bitcoin system that can realize point-to-point online payment without a third-party organization. After supporting this magical application scenario and subverting the traditional centralized system, the blockchain technology has attracted worldwide attention, triggered a research upsurge of blockchain consensus algorithm, and produced a large number of innovative applications. Although various consensus algorithms continue to evolve with the iteration of blockchain products and applications, Proof of Work (POW) and Proof of Skake (POS) algorithms are still the core of consensus algorithms. This paper discusses two algorithms of POW and POS in blockchain consensus mechanism, and analyzes the advantages and the existing problems of the two consensus mechanisms. Since consensus mechanism is the main focus of blockchain technology and has many influencing factors, this paper discusses the current problems and some improved ideas, and selects some typical algorithms for a more systematic introduction. In addition, some important issues related to safety and performance are also discussed. This paper provides the researchers a great reference on blockchain consensus mechanism.