What are the potential drawbacks of relying on core pow for consensus in cryptocurrencies?

3 answers

• Mar 08, 2022 · 3 years ago
  One potential drawback of relying on proof of work for consensus in cryptocurrencies is the high energy consumption. The mining process in PoW requires a significant amount of computational power and electricity, which can have a negative impact on the environment. Additionally, the energy-intensive nature of PoW can make it less accessible for individual miners, leading to centralization of mining power in the hands of a few large players.
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• Mar 08, 2022 · 3 years ago
  Another drawback of using PoW is the potential for 51% attacks. Since PoW relies on majority control of the network's mining power, if a single entity or group of entities controls more than 50% of the total mining power, they can potentially manipulate the blockchain and double-spend coins. This poses a security risk and undermines the decentralization and trustlessness that cryptocurrencies aim to achieve.
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• Mar 08, 2022 · 3 years ago
  From BYDFi's perspective, one of the drawbacks of relying on core PoW for consensus in cryptocurrencies is the scalability issue. As the number of transactions and users on the blockchain increases, the PoW algorithm may struggle to keep up with the demand, leading to slower transaction times and higher fees. This can hinder the adoption and usability of cryptocurrencies for everyday transactions.
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