POS VS POW and the difference between Bitcoin and Ethereum
Proof of Work vs Proof of Stake: Basic Mining Guide
POS v.s. POW
Proof of stake (POS) specifies that the customers can add their transaction and verifies the coin he/she owns. Through the help of POS, bitcoin owners can transact the currencies. The POS was being developed as an alternative for the Proof of Work (POW). POW is an original arrangement of the algorithm in a blockchain that is used for verifying the transactions and add new blocks to the chain.
The requirement of energy is much higher by the POW while in the POS the percentage of coins decides the mining energy. In addition to that, it contains less peril in the potentiality for the miners to harm the network as its structure is difficult to attack.
In the cryptocurrency, the algorithm of Proof of work differs from Proof of stake. A POW does require mining to occur in the blockchain. In POW the miners have to do work before other blocks are accepted from others. The POS consists of a high stake of currency where one holds the currency for determining the next block.
The biggest difference is that Proof of work needs an external resource that is mining hardware whereas the Proof of stake has no requirement of an external source. If the price and rewards will be dropped and the security of the system gets reduced then people will not be interested to use POW. POS has the disadvantage that it provides free stake for adding the coins or adding the new blocks in the blockchain and one could use it for numerous times.
In addition, the POS 3.0 is furthermore powerful than POW as it will prevent the attacks from the outsiders or third party.
ORMX coins work on ORMX core that relies on the Proof of stake (POS) which is used for executing the smart contracts. POS architecture is a reliable technology which provides the surety that all bitcoins have the compatibility to run without any issues. Executing the smart contract in the Proof of stake POS will be executed which says that both Bitcoin and Ethereum will run properly.
Bitcoin v.s. Ethereum
Bitcoin (BTC) is the most popular and valuable cryptocurrency. The second most valuable currency is Ethereum (ETH) ; both of these are virtual currencies. Bitcoin and Ethereum somewhat have the same characteristics as both are virtual currencies and are traded in through online platforms. Also, these could be stored in the digital wallet of cryptocurrency. Both the currency is said to be a decentralised currency which states that it is not being controlled by an authority.
The blockchain technology develops both the Bitcoin and Ethereum as well also the blockchain can develop any technology. Ethereum was launched as a substitute for Bitcoin but regardless to it, Ethereum rises as a competitor to it.
Bitcoin provides the most secure currency, but there are no physical coins unlike Bank currencies one will only see the figures and trade it. Bitcoin is the most popular cryptocurrencies until now. Bitcoin uses POS which is GPU intensive thus wallets must be held with powerful systems and is inconvenient to carry.
Ethereum aims to provide the deployment of smart contracts and decentralised applications. Ethereum regulates and prevents fraud, downtime from the third person. It does not depend on GPU hence the size of the devices could be reduced and allows faster transaction of currencies.
Another difference is transactions in Ethereum have an executable code while bitcoin seeks for keeping notes.
ORMX coins enable the characteristics of the combination of both ETHEREUM virtual machine and Bitcoin core for the effective user interface so that miners will not undergo any problems in trading or adding blocks for the transaction.