The Ethereum Merge|Consensus Mechanism Explained: What Would Happen If PoW is Replaced by PoS?

What is PoW?

As its name implies, PoW (Proof of Work) is the proof of workloads, and the essential principle of PoW is that whoever works more gets more. PoW describes a system that requires participants to solve a difficult but easily verifiable problem to win the right to update blocks and reach a consensus.

What is PoS?

The rationale of PoS (Proof of Stake) is similar to the shareholding system in the real world. The more shares one holds, the greater a say he will have, and he will also be more likely to win the block updating right.

PoW to PoS after the Merge

The case of PoS is more intuitive than PoW. Let’s continue with our attendance example. After running the previous system for a while, many credits have been rewarded to students. At this point, the teachers felt that it is too troublesome to release one question a day and decided to determine the record-keeping right via a lottery system where the probability of winning the lottery depends on the number of credits held by the students. Suppose the school has offered 100 credits and Smith received one credit, under this model, there is a 1% possibility that he would win the lottery. If Smith feels that 1% is too low, he could also buy more credits from his classmates in private to increase the likelihood of winning.

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