What is the difference between PoW and PoS in Decred?
The Decred project utilizes both Proof-of-Work (PoW) and Proof-of-Stake (PoS) consensus mechanisms.
PoW is a consensus mechanism that requires miners to solve complex mathematical problems in order to validate transactions and create new blocks on the blockchain. PoS is a consensus mechanism that requires users to stake their coins in order to validate transactions and create new blocks on the blockchain. The main difference between PoW and PoS in Decred is that PoW miners are rewarded with newly minted coins, while PoS stakeholders are rewarded with transaction fees.
This means that PoW miners are incentivized to mine more blocks, while PoS stakeholders are incentivized to hold their coins for longer periods of time. Additionally, Decred utilizes a hybrid consensus system which combines both PoW and PoS, allowing for greater decentralization and security than either system alone.
