What are the alternatives to proof of work (PoW) in the world of digital currencies?

1 answers

• Dec 26, 2021 · 3 years ago
  BYDFi, a digital currency exchange, utilizes a consensus mechanism called proof of authority (PoA). In PoA, a limited number of trusted validators are responsible for validating transactions and creating new blocks. Validators are selected based on their reputation and authority within the network. PoA offers fast transaction speeds and high scalability, as the validators are known entities and can quickly reach consensus. However, PoA is more centralized compared to PoW and may be susceptible to collusion among validators.
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