FRIDAY FLASHBACK!
This week we touched on the crypto market cap rebounding ahead of the ETH merge. We also touched on Proof of Stake and Proof of Work.
Monday: We discussed the crypto surge that we saw this past weekend; it was partly because of crypto being an emerging market as well as advances in technology and of course good ole market volatility.😜 (In other words, crypto is pretty new, the technology surrounding it is moving and shaking, so the crypto market is going to go to the sky one day, and the next day it could hit the floor. But, as with any investment, you go in knowing about the risks involved.)
Tuesday: We discussed ETH being converted to ETH2 and that you may have noticed that on the local crypto platforms. To understand the ETH merge we’ll need to also understand Proof-of-stake. In Sherma’s language proof-of-stake is a new method that will be used to process crypto transactions and create new blocks in a blockchain. The purpose of the ETH merge is for the purpose of shifting the Ethereum blockchain from the current proof of work (PoW) consensus mechanism to a proof-of-stake (PoS) model. Proof-of-Stake is intended to be faster and more energy efficient.
Wednesday: Coindesk dot com spoke of the difference between PoW and PoS: “Proof-of-work is a competition between miners to solve cryptographic puzzles and validate transactions in order to earn block rewards. Proof-of-stake implements randomly chosen validators to make sure the transaction is reliable, compensating them in return with crypto.”
Thursday: We discussed the advantages and disadvantages between PoW and PoS: Security and dependability are the advantages of proof-of-work. The big disadvantages of proof of work are a lack of speed and the amount of energy it uses. With proof-of-stake the advantages are that it doesn’t use complex computations so which makes it easier on energy efficiency. Another advantage of proof-of-stake is that it’s easier for an investor to participate in that system than in the proof-of-work system because technical skills and thorough knowledge of fancy computer systems aren’t needed.
And that’s it for this week! Let me know if you have any questions, put them in the comments below or hit the CONTACT US button on shermajacqueline dot com
Have a wonderful weekend! 💃🏾
Copyright ©2022 Sherma Jacqueline Felix, BLACK ADVANTAGE Publishing™ . The author shall neither be liable nor responsible for any loss or damage allegedly arising from any information or suggestions in this post.