I am researching about Nubits and Bitcoin, I realized Nubits is faster than Bitcoin! How could it be possible while Nubits implement on Bitcoin Blockchain?
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It's possible because the consensus algorithm that is executed in Nubits is the Proof of Stake. These algorithm objective is to create blocks by consensus among the nodes of the network.
Bitcoin executes the Proof of Work algorithm to achieve consensus. Each node tries to find a nonce to create the block with a valid hash, i.e. a hash wich is smaller than a predefined number. The predefined number allows Bitcoin to control the average time that is needed to create a block. The predefine number or difficulty changes to maintain an average time of 10 minutes to create each block.
However, other implementations of Blockchain use other algorithms. For example, Hyperledger Fabirc uses the PBFT wich achieves the consensus in 10 seconds, i.e. creates each block in 10 seconds.
Nubits, like other implementations of Blockchain, uses the Proof of Stake. Proof of stake is a different way to validate transactions based and achieve the distributed consensus. It is still an algorithm, and the purpose is the same of the proof of work, but the process to reach the goal is quite different. Unlike the proof-of-Work, where the algorithm rewards miners who solve mathematical problems with the goal of validating transactions and creating new blocks, with the proof of stake, the creator of a new block is chosen in a deterministic way, depending on its wealth, also defined as stake.
Urko
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