Proof of Work Versus Proof of Stake

Joshua Gans

Chapter Chapter 5 in The Economics of Blockchain Consensus, 2023, pp 69-83 from Springer

Abstract: Abstract This chapter discusses the differences between Proof of Work (PoW) and Proof of Stake (PoS) consensus mechanisms in blockchain networks. PoW, as in Bitcoin, requires significant resources, resulting in high energy consumption. PoS, a more energy-efficient alternative, requires nodes to hold and commit tokens as stakes. This chapter compares the security of both PoS and PoW, highlighting key trade-offs. While PoS can potentially have greater attack detection and response capabilities, it generally requires more off-chain coordination. Understanding these trade-offs is vital for designing efficient and secure blockchain networks.

Keywords: Proof of Work; Proof of Stake; blockchain; Security; Consensus mechanisms (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-33083-4_5

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DOI: 10.1007/978-3-031-33083-4_5

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