SteemitCryptoAcademy: Consensus Algorithms homework for @alphafx

INTRODUCTION

It's another week in steemit crypto academy and today I'll be making a post based on the lecture given by professor @alphafx on consensus algorithms. In this post I'll be discussing on PROOF OF CAPACITY.

PROOF OF CAPACITY

Source

Proof of capacity (short form- PoC ) is a type of consensus algorithm in blockchain technology that allows the devices mining in a network use the free available space on their hard drive to decide mining rights and validate transactions.

Proof of capacity is one of the solutions used to counter the high energy consumption in proof of work and proof of stake system.

Being that the poc system uses the available space on hard drive to work,the larger the hard drive ,the larger the chances of getting mining rewards .Unlike the proof of work system where the numbers in the block headers are repeatedly altered,the proof of capacity system works by storing possible solutions in the hard drive even before the mining activity begins.

HOW PROOF OF CAPACITY WORKS

In proof of capacity,there are two (2) processes;

1. Plotting;

In this process,a list of all possible nonce values are created through repeated hashing of data.The having function used in this process is called a shabal .When the hashes are joined together,they form scoops.Each nonce contains about 8192 hashes and they are numbered from 0 to 8191.

2. Mining;

The second process is the actual mining exercise during which the miner calculated the scoop number.This process is often repeated and used in determining the deadline for each nonce in the hard drive.A deadline is the duration of time that has passed since the last block was forged and if no other miner creates a block within that time, the miner would be allowed to create the next block and claim that block reward.

Advantages of proof of capacity

• There's no need for repeated upgrading of hardware.
• Mining data can be easily wiped off and the drive can be reused for any other data purpose.
• It is about 30-times more energy efficient than the ASIC-based mining of Bitcoin.
  *PoC can perform on regular hard drives,even those with android based systems.

Disadvantages of proof of capacity

• Many developers have not yet adopted the system.
• Might lead to conflict in building larger hard drives.
• Mining activities could be affected by malware.

PROJECTS USING POC

• Burstcoin

• Storj

• Chia

• Spacemint

• BXTB

• BTCHD

Comparison between Proof of Work and proof of capacity

The proof of work system in relation to the proof of capacity system has a very low performance whose system boasts of high performance and efficiency. It is easier to find a solution in PoC than in PoW even though checking results are easier in PoW than in PoC.

They both make use of public blockchain technology. Projects like Bitcoin and ethereum uses PoW while burstcoin uses PoC.

Comparison between Proof of Stake and proof of capacity

In the proof of capacity system,the available space in the system if used for blocks , meanwhile in the proof of stake system,a user stakes his own assets to create blocks.In PoS , users put down their assets rather than compete with other users.

Projects like Bitcoin and ethereum make use of the PoS system while Burstcoin uses the point of capacity system.

CONCLUSION;

Proof of capacity is one of the best mining systems and even though it is not that popular,it has proven itself to be reliable and efficient.

Thank you professor @alphafx for the lecture,I really enjoyed reading it and then making this post after.

CC; @alphafx
CC; @steemalive

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