Hybrid PoW/PoS are protocols that combine the advantages of two different consensus structures under one roof and allow for a more secure operational structure. To better understand hybrid PoW/PoS protocols, it is first necessary to understand what consensus is, how it works, and what it is used for.
What Is Consensus?
Consensus is used to build the consensus needed to run a team or system. Consensus mechanisms aim to manage the community and bring them together under one idea. They aim to ensure that all network users have equal rights. Consensus minimizes risks such as fraud or double-spending in transactions between users. Consensus ensures that the network is sustainable and provides a more reliable structure for users.
The most commonly used consensus algorithms in the blockchain industry are:
- Proof of Work (PoW)
- Proof of Stake (PoS)
- Proof of Burn (PoB)
- Proof of History (PoH)
- Proof of Authority (PoA)
What Is Hybrid PoW/PoS?
In a hybrid Proof of Work (PoW) and Proof of Stake (PoS) mechanism, both consensuses are utilized. Each is used to compensate for the shortcomings of the other. Hybrid PoW/PoS allows for both as consensus algorithms in the blockchain network, and the goal is to bridge the gaps and create a more balanced system. Hybrid PoW/PoS aims to provide a more secure blockchain by combining Proof of Work and Proof of Stake mechanisms.
PoW is a consensus mechanism used in the blockchain protocol. It involves solving complex problems to add transactions to the blockchain network. These problems require a high level of computational power to solve. PoS is a consensus structure that works by a user on the blockchain network holding a certain amount of cryptocurrencies. Proof of Work allows miners on the blockchain to mine and add blocks to the chain, while Proof of Stake allows miners to confirm transactions and blocks. Hybrid PoW/PoS encourages miners to have high levels of processing power and greater participation in the network, while increasing the security of the blockchain. Decred is an example of a cryptocurrency that uses PoW/PoS together.
What Is Proof of Work (PoW)?
The Proof of Work consensus, which the Bitcoin blockchain leverages, was created as a protocol designed to prevent spam messages or attacks designed to disrupt the functioning of a system. PoW was introduced in 1993 in a paper by computer scientists Cynthia Dwork and Moni Naor. In the early days, the PoW protocol was frequently used to prevent DDoS (Distributed Denial of Service) attacks.
On October 31, 2008, Satoshi Nakamoto, known as the creator of Bitcoin, published "Bitcoin: Peer-to-Peer Electronic Cash System" on October 31, 2008, he demonstrated how the security of the PoW protocol could be exploited.
Miners in blockchain networks are tasked with adding new blocks to the blockchain chain. In order for blocks to be added to the network, miners need to solve some complex problems. Miners need powerful processors to solve these problems. The first miner who solves the problem and verifies the transactions is rewarded with a cryptocurrency when they add the transaction to the network.
What Is Proof of Stake (PoS)?
Proof of Stake (PoS) is a consensus structure that was introduced as an alternative to the Proof of Work protocol and works by taking into account the amount of digital assets held. Introduced by blockchain developers Sunny King and Scott Nadal in 2012, PoS was designed as a solution to the processor power required for mining and the resulting high energy consumption. Peercoin was the first cryptocurrency to be mined with the PoS mechanism. In a blockchain network with a PoW mechanism, the miner with more cryptoasset units has more say in the network.
What Is Hybrid Blockchain?
Hybrid blockchain networks combine the advantages of private and public blockchain solutions. Hybrid blockchains operate publicly. With a focus on transparency and security, hybrid blockchains are fully customizable. Participants in a hybrid blockchain network can decide who has access to the blockchain or whether certain transactions should be public or not.
The hybrid blockchain model, which combines public and private blockchain structure, combines the advantages of both systems under one roof. Network participants or project members can choose which transactions are public or which transactions are restricted to participants. Hybrid blockchain guarantees that transactions remain private. Hybrid blockchain networks are generally secure, transparent, and immutable, but only selected participants can be restricted from viewing, modifying, approving, or adding transactions.
