A study by Kraken took a deep dive into the Proof of Work (PoW) and Proof of Stake (PoS) mechanisms to find neither was ‘better’ than the opposite, however every had distinctive traits that may bolster particular varieties of blockchain protocols.

The report examines PoW and PoS consensus mechanisms’ resistance skills to the Sybil assaults.

Sybil assaults intention to manage the entire community by manipulating a number of accounts, nodes, or computer systems. The most typical Sybil assault within the crypto area is the 51% attack, the place the attackers attempt to take over no less than 51% of all nodes to manage the entire community. As decentralization lies on the core of blockchains, resistance to Sybil assaults is essential.

Both PoW and PoS mechanisms require nodes to put money into the community, so that they’re satisfied to run an sincere and decentralized system.

According to the report, the PoW mechanism’s market dominance is 58%, whereas PoS’ is 12%. However, this doesn’t imply PoW is best than PoS.

Proof of Work

PoW mechanisms require computational energy to unravel mathematic issues to mine blocks. Miners make investments {hardware} and electrical energy of their operations and are rewarded with block rewards once they mine an sincere block.


  • Being the dominant consensus mechanism within the crypto sphere, PoW programs have been examined in apply excess of PoS mechanisms.
  • PoW blockchains are particularly proof against 51% assaults since taking up greater than half of the nodes can be too costly. Attackers wouldn’t have the ability to earn sufficient to cowl the electrical energy and {hardware} prices for taking up 51% of the nodes, so it’s typically not well worth the bother.
  • Manipulating governance protocol can also be significantly arduous in PoW mechanisms as effectively. As one node counts for one vote, it’s troublesome to drive a network-wide consensus. This wouldn’t be potential in PoS networks, the place the customers with the biggest staked quantity might maintain an higher hand within the governmental selections.
  • As PoW programs additionally discourage forking by design. As the PoW miners make investments energy into their mining operations, within the case of a fork, they wouldn’t threat mining for the forked chain, pondering that it could not maintain up. In PoS programs, forking is significantly simple as PoS miners can simply stake for each the unique chain and the fork chain to double their earnings.


  • PoW mechanisms rely closely on energy consumption, which raises concerns about its environmental affect. Also, miners are required to replace their mining gear repeatedly to maintain producing at most effectivity.
  • Small PoW networks turn out to be susceptible to 51% assaults as a result of the price of taking up greater than half of the nodes can be reasonably priced.
  • As all nodes function anonymously, detecting a malicious node or stopping it from taking part within the chain turns into inconceivable.

Proof of Stake

PoS programs depend on locked-up cash to function the community. Instead of consuming electrical energy and working {hardware}, PoS miners take part within the community by staking cash. Each time, the community randomly chooses amongst actively staking nodes to confirm the validity of transactions and produce the following block.


  • PoS community requires almost no vitality and is rather more environmentally pleasant than PoW networks. This is the primary incentive behind Ethereum‘s recent merge with its Goerli testnet. As it doesn’t require computational energy, PoS networks additionally relieve their miners from having to replace their mining gear.
  • As PoS networks depend on staked cash, it’s potential to chop malicious nodes off as soon as recognized. In addition to stopping them from taking part within the chain once more, the community may also confiscate their staked cash as a penalty, which is an incentive to mine sincere blocks for the miners.
  • The PoS programs get rid of the competitors over mining blocks by selecting the block validators randomly, which will increase effectivity.
  • Overall, PoS networks are simple to take part in since they don’t require an excessive amount of energy or particular {hardware}. This lowers the entry boundaries, making PoS networks accessible to extra.


  • PoS networks are a comparatively new know-how and have been examined a lot lower than PoW networks. Certain PoS networks will be susceptible to assaults sooner or later.
  • Nodes with the very best quantity of staked cash can have the higher hand in governance votes. Therefore, PoS blockchains turn out to be extra susceptible to centralization.
  • Even although PoS networks typically decrease the entry boundaries, some PoS blockchains require massive preliminary investments to turn out to be a node. This might retain the community from rising and switch it right into a centralized blockchain.

PoS for scalability; PoW for decentralization and safety

Considering the strengths and weaknesses of each protocols, the report concludes that neither is ideal in opposition to Sybil assaults. However, every affords totally different advantages to blockchains, which will be beneficial relying on the chain’s objective.

Based on their traits, PoW networks supply robust decentralization and safety. It is extra extensively examined, troublesome to show right into a centralized community, and discourages fixed forking. A PoW community can be rather more fascinating to be used circumstances like arduous cash than a PoS one, because it gained’t enable the richest to take over the community and supplies extra safety.

PoS networks, however, are rather more vitality environment friendly and higher options for networks that worth scalability. The community attaches nodes randomly to speed up the method, and sincere nodes can block malicious ones out of the system. A PoS community would profit use circumstances most, together with good contracts.

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