POS mechanism can be described as a kind of virtual mining. Since POW mainly relies on the scarcity of computer hardware to prevent witch attacks, POS mainly relies on the token of blockchain itself. In POW, a user may spend $65,438+0,000 to buy a computer, join the network to mine and generate new blocks, and get a reward. In POS, users can buy equivalent tokens with $65,438+0,000, and put these tokens into the POS mechanism as a deposit, so that users have the opportunity to generate new blocks and get rewards. In POW, if users spend $2,000 on hardware equipment, they will certainly get twice the computing power to mine and get twice the return. Similarly, if you invest twice as much token as your deposit in the POS mechanism, you have twice the chance to get the right to generate new blocks.
As we all know, the "DeFi fever" in the third quarter greatly increased the transaction volume on the Ethereum network. According to the Dapp report of D 'Appradar 2020Q3, the transaction volume of Ethereum soared to 1 195 billion USD in the third quarter of 2020, an increase of nearly 1200% compared with the second quarter, but with the network congestion, the transaction cost soared. On September 9th this year, the average transaction cost of Ethereum reached a height of 14 USD, setting a new record. Due to soaring costs, many transactions can only be postponed.
BM, the founder of EOS, lamented that the transaction cost of Ethereum was too high for most normal-scale transactions.
At present, Ethereum still faces multiple problems. The first is the transaction processing mentioned above. Ethereum network supports thousands of decentralized applications and needs to handle a large number of transactions every second. However, Ethereum 1.0, which uses PoW*** knowledge mechanism, can only handle about 10-50 transactions per second, which is far less than centralized networks such as PayPal and Visa, and far from meeting the needs of users for transaction speed. The high handling fee has always been an important point that Ethereum has been criticized. V God bluntly said that Ethereum had no choice but to endure the high transaction costs before completing the winding and fragmentation. So Ethereum needs to be upgraded.