In Bitcoin’s work proof, it’s investment hardware. About every 10 minutes, Bitcoin miners compete to solve the riddle. The winner joins the next block in the chain and claims the new bitcoin in the form of a block prize. But finding a solution is like trying to win the lottery. You have to guess until you get lucky. The more powerful the computer, the more you can guess.
Server farms around the world are entirely devoted to it, throwing trillion guesses in a second. And the bigger the mining operation, the bigger their cost savings, and thus, their market share. This works against the concept of decentralization. Any system that uses working evidence will naturally re-centralize.
In the case of Bitcoin, this caused some large companies to take control of the network.
Since the beginning of Bitcoin’s history, however, crypto enthusiasts have explored other consensus mechanisms that could somewhat preserve decentralization અને and not be useless and destructive to the planet as evidence of work.
How the proof of the claim works
Evidence of the first proposed stake on the online forum BitcoinTalk on July 11, 2011 is one of the more popular options. In fact, according to a white paper describing the new blockchain in early 2013, Etherium was supposed to be protected from the beginning. But as Buterine noted in 2014, developing such a system was “so trivial that some would consider it impossible.” So Ethereum launched with a proof-of-work model instead, and set to work developing a proof-of-stack algorithm.
Evidence of participation removes miners and replaces them with “accreditors”. Instead of investing in an energy-intensive computer farm, you invest in the core coins of the system. To become a validator and win block rewards, you lock your tokens into a smart contract અથવા or take part in a small piece of computer code running on the blockchain. When you send a cryptocurrency to a smart contract’s wallet address, the contract contains that currency, much like depositing money in a vault.