The cryptocurrency world has been adapting to the current demands and generating new consensus algorithms with better functionalities. The first consensus algorithm was the Proof of Work algorithm, but today there are various protocols such as Proof of Stake and Proof of Space.
Specific consensus algorithms offer certain advantages over others. For example, the Proof of Stake algorithm is a more secure, faster and cheaper consensus protocol than Proof of Work. LaneAxis, the world’s freight brokerless direct freight network, utilizes a Proof of Stake algorithm to ensure quick transactions and better security and privacy.
Difference between Proof of Work and Proof of Stake Consensus Protocol
In the “early days” of cryptocurrency, the only consensus available was the Proof of Work algorithm, which Bitcoin and Ether still use. However, as the crypto community grew, so did the daily transactions. But the Proof of Work algorithm could not manage such high traffic, resulting in network congestion, high transaction fees and lower transaction speeds.
The main reason for this network congestion is that Proof of Work relies on hardware mining capabilities, an energy-intensive process. Recently,