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Why choose PoS over PoW for Altcoins?

If you have been exposed to cryptocurrencies, then you would have heard of PoS (Proof-of-Stake). It is a mining concept available in some blockchains. Instead of basing your mining power by hashrate, it basis it on the amount of coins a user "stakes" or in other words holds in his wallet. Meaning that if you have 1,000 coins, you would mine more than a person with 10 coins regardless of their computing power.


In comparison to Proof-of-Work, Proof-of-Staking is the ideal solution for a blockchain with small hashrate. The main reason being that 51% attacks are real and a properly setup PoS system will not be easily compromised. 


ChainZilla is able to deploy pure PoW blockchains. However, there are serious risks that need to be mitigated before approaching the decision to use only PoW. 


When we deploy a PoS blockchain there is an initial period of PoW or a pre-mine which is then distributed among several nodes to ensure the network is staking and processing blocks. 


Examples of PoS coins:

PeerCoin (the first to use PoS)

NAV Coin

NEO

PIVX


Examples of PoW coins:

BTC

ETH

ZCASH

KOMODO (uses a hybrid dPoW to recycle BTC's hashrate)


S
St3rling is the author of this solution article.

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