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  • PoW is actually the abbreviation of Proof of Work, which is translated into Chinese as "Proof of Work". The earliest Bitcoin and the most popular ETH were developed with PoW as the core. As we all know, a virtual currency is just a string of keys, which has no entity or physical equivalent, so a new certificate is needed to prove that you have indeed paid a certain price to generate this virtual currency. How to prove it? Bitcoin's approach is to provide a very complex calculation formula, allowing users to spend computer resources to calculate the formula answer. reward for this answer is "Bitcoin". Many virtual coins born after Bitcoin use the same proof method. Such as ETH. The advantages of PoW are obvious. This method avoids the problem of trust very well, so that every virtual currency that appears in the market is actually generated, rather than illegally generated by the issuer or cheater. However, not all PoW virtual coins are trustworthy, and some virtual currency issuers will quietly leave a backdoor in the algorithm, so that a large number of virtual coins can be generated for profit after the virtual currency price increases. Image source: veer One of the most famous examples is the Chia coin. It took only a year for the Chia coin to go from being popular to being completely cool. key reason is that the algorithm of the Chia coin was found to have an obvious backdoor, and the issuer can directly pass the backdoor. Manipulating the number of Chia coins is the most serious act of dishonesty. The consequence of dishonesty in the virtual currency market is that the value of the currency plummets, and it is finally delisted. This is the case with Chia coins. Another disadvantage of PoW is that it consumes a lot of resources, high-performance computing chips, a lot of power resources, and a lot of precious metal raw materials (for the production of hardware), but what is produced by consuming so many resources is a real world. Virtual currency with no real meaning. The virtual currency in the form of PoW has always been criticized by many environmental protection organizations, and many countries have also restricted and banned the virtual currency industry on the grounds of energy security and financial security. With the deepening of the contradiction between energy crisis, carbon emission, semiconductor production capacity and other issues, virtual currency also needs to find a new direction to get rid of its dependence on PoW, and this direction is PoS. PoS is fully expressed as Proof of Stake, both rights and interests A certificate (also called a bond certificate). What is PoS? For example, ETH under PoW is a factory, and it pays more for more work. Users must increase their workload to get more rewards. The ETH under the PoS mechanism is a joint-stock company,and the more shares that people hold, the more profits they can get in the company's operations. So how to generate new blocks under the PoS mechanism? The actual process is more complicated, so let’s take a brief look at it. Let’s take ETH as an example. All users who hold ETH are “validators” on the blockchain, and users who hold more than a certain amount of ETH have the right to propose. . Users with the right to propose can use their ETH as a "deposit" to initiate a proposal. After certain conditions are met, the proposal can be broadcast on the entire network, and the corresponding ETH holders are invited to vote on the proposal. You can choose Agree or disagree, the block will be finalized after two-thirds of the users participating in the voting agree, and all users participating in the block voting will divide and generate new blocks according to the amount of "deposit" they paid. Earned ETH. If someone initiates a malicious proposal to maliciously generate a new block with a large number of nodes, the node will be destroyed after the rest of the nodes vote of no confidence, and the ETH mortgaged by the maliciously voting node will be directly destroyed, because the total amount of ETH will be destroyed. The amount of ETH decreases, so the value of ETH for other holders will increase, and the attacker's loss will be maximized. Therefore, in addition to the malicious nodes held by the attacker, the remaining honest nodes will be happy to cast a no-confidence vote. Using this mechanism, unless the attacker holds more than two-thirds of the voting nodes, it is difficult to complete maliciously attacked. Even if the attack is really completed and the blockchain is recognized, Ethereum can perform manual intervention to delete cheating blocks and maintain community fairness. However, manual intervention will cause the ETH market to fall into a crisis of trust and directly affect the market value of ETH. If the attacker's purpose is to obtain more ETH, then his attack will cause his ETH to decrease and the overall assets to shrink. The real meaning The gains outweigh the losses. Moreover, even if external forces want to carry out malicious attacks, the first thing they need to do is to acquire a large amount of ETH. Only when enough nodes are mastered can an attack be launched, and there is a high probability that all the funds invested after the attack will be lost. Imagine someone would put tens of billions of dollars in funds so recklessly, just to crash the ETH market.