Neither PoW nor PoS is new to blockchain enthusiasts. These two consensuses have both advantages and disadvantages. In order to solve the problems, QuarkChain came up with its own consensus PoSW, a combination of PoW and PoS. PoSW is proved to be a consensus mechanism that better complies with the requirements of humanity.
PoW stands for proof of work, which is a competition of hash power. Whoever has stronger computing power, he or she has a higher probability to mine blocks. The first advantage is that it’s time-tested and popular. Besides, it’s decentralized so that miners are free to enter or exit. The disadvantages include low efficiency, high energy consumption and potential risk of 51% attack.
PoS is the opposite of PoW, PoS stands for a proof of stake. Whoever has more proof of stake, he or she has the right to verify the transaction. It’s like the stock rights and you can get rewards by holding them.
The advantages are high efficiency and low energy consumption. Moreover, all the stakeholders can share the benefits. A 51% attack is not worth on a blockchain system of PoS.
As for the disadvantages, the first is a permit for nodes. To be more precise, a permit to enter is needed for both PoS and DPoS, which means the nodes are not free to enter or exit. The second is that it’s easy to be forked. The third one is that it’s not decentralized enough and has a Matthew effect.
A combination of PoS and PoW would be great. It could make use of the advantages and cover the shortages. That’s what QuarkChain’s PoSW exactly do.
PoSW, which is proof of staked work, is exclusively developed by QuarkChain and run on the different shards. PoSW allows miners to enjoy the benefits of lower the mining difficulty by staking original tokens (currently it’s 20 times lower)
PoS plus PoW and then become PoSW. On one hand, it has a competition of computing power like PoW. At the same time, if miners stake QKC when mining, they can enjoy the benefits of lower mining difficulty. In this way, more holdings are allowed to gain more rights to verify the transaction like PoS. In addition, it builds a cooperative foundation between the miners and the holders. The miners can invite the holders to stake QKC on behalf of them by providing a rebate. The holders of QKC can also get a rebate from the miners by funding them. It provides a new way for the holders to get their assets increased.
PoSW is open to every miner without a permit. The staked miners will enjoy the difficulty deduction. It means if a miner wants to lower the difficulty, he or she needs to buy QKC in the secondary market, thus, any attack will cause his or her own property loss. By this way, a 51% attack will be avoided effectively. Besides, PoSW is more similar to PoW which makes the whole system more decentralized. It lowers the energy consumption and avoids the risks of forking that PoS has.
In all, QuarkChain takes advantages of PoS and PoW. The miners and holders have a cooperative partnership in PoSW just like the startups and VCs. The miners can create value by themselves, moreover, they can improve the mining efficiency and win the competition of hash power. It is more decentralized and has a higher security level which makes it resistant to a 51% attack and infinite forking attacks. Proof of Staked Work makes a cooperation model just like the social mechanism in reality, which is more humanity.