Analysis of Consensus Mechanisms: PoW and PoS

Abstract

Along with the trend of Bitcoin blockchain, the concept behind all virtual currency has be-come popular in the study of the Internet. This essay mainly researches two kinds of common consensus mechanisms for the current blockchain network and looks forward to the future development of the technology’s usage in daily life. This research aims to overview the two most common consensus mechanisms in the construction of blockchain. By reviewing re-sources from other research, an explanation of the goal of the consensus method, the ad-vantages, and disadvantages of each approach and the future development of these two meth-ods are summarized and developed. The result of the review explains the shifts of mature vir-tual currencies from proof of work to proof of stake and advises what mechanism should be used at starting stage and why a shift is necessary for proof of stake currencies.