SteemitCryptoAcademy: Consensus Algorithms@ alphafx : Homework Post : My Entry

Hello, fellow Steemit users. Our professor @alphafx has taught me a great deal about Consensus Algorithm and its various types. I am very obliged for the knowledge I received and now I would like to present my homework post. I have chosen to write about Proof of Capacity in my post but first I would like to tell a bit about Consensus Algorithm.

CONSENSUS ALGORITHM

Consensus Algorithm can be defined as a procedure of well-instructed codes which are used to reach a common agreement over any disputed ledger in the Blockchain network. Consensus Algorithm is used to achieve the task of reliability in the Blockchain network which comprises of several unreliable nodes. This algorithm keeps the nodes in check and confirms that any new block that gets added to the Blockchain network is the one that is agreeable according to the nodes set in the Blockchain community. This algorithm prevents the unethical miners and programmers from adding false blocks and nodes to the Blockchain network.

FEATURES AND PRIMARY USES OF CONSENSUS ALGORITHM

• Keeps the nodes in order and under proper check.
• Synchronizing and ensuring consistency among state machine replicas.
• Creates and checks the transactions.
• Prevents any false block from adding which is not in agreement by the node.
• Protects the Blockchain network from hackers and other unethical users.

PROOF OF CAPACITY (PoC)

Proof of Capacity is a type of Consensus Algorithm where the hard drive space that is available on the user's mining device is used for determining the mining rights and the transaction validations. This algorithm is different from those which depend on the device's mining capability (PoW) or the user's amount of stake in a particular cryptocurrency (PoS). This increases the efficiency of usage. This algorithm was studied and brought up as an alternative to PoW and PoS sometime after the release of Bitcoin.

HOW PoC WORKS

The Proof of Capacity algorithm involves a two-step process which is basically plotting and mining.

First Step - For the first step, that is plotting, the hard disk is assessed and plotted. The repeated hashing of data place and from this all possible nonce values are created for a miner's account. A nonce value contains 8192 hashes, numbered from 0 to 8191. Adjacent hashes are then paired into 'scoops' which means that hash 0 and 1 pair up to form scoop 0 and hash 2 and 3 pair up to form scoop 1. This is referred to as plotting in PoC.

Second Step - The second step involves the mining process wherein the miner generates and that is used for further calculation. Supposedly, if the miner happens to generate a scoop number, say 56, then this algorithm will take the miner to the scoop number 56 of nonce 1, and the data mentioned there is then used to calculate a deadline value.

This process goes on for each nonce that is consolidated in the miner's device. Then for the calculation of deadlines, the miner selects the one that has the minimum deadline.

A deadline refers to the time elapsed between the forging of two blocks by the miner. This time elapsed is in seconds. If no one is able to forge a block within this elapsed time then the miner can forge the next block and eventually claim the reward. This can be explained with an example -

Example - If the deadline for a miner is 25 seconds and within this brief time period of 25 seconds no other miner is able to forge the next block, then this miner gets to claim the reward after forging the block.

FEATURES OF PROOF OF CAPACITY

• In order to harbor solutions to a cryptocurrency hashing problem, it validates space in a user's hard drive.
• Storj, Burst, Chia, and Spacemint are the blockchains that work on PoC.
• It provides authentication systems.

WHAT IS THE NEED FOR PoC?

Proof of Capacity was sorted out as a solution to mining more effectively because it did not involve any high energy consumption like what happens in PoW or any cryptocurrency hoarding which was the case with PoS.
With Power of Capacity, even the nodes were allowed to use the empty space on the hard drive for mining of cryptocurrencies.

PoC proved more effective as it stored a sorted list of possible solutions on the mining device even before the activity of mining commenced. Whereas with the PoW system there is repeated hashing for solution value that takes place.

The larger the disk, the more chances the miner gets for winning a reward. This is because the more space you got, the more solution values it can store, and thus there are more chances of getting the required hash values.

ADVANTAGES OF PoC

• It is compatible with any regular hard drive including those with android based systems.
• There is no need to install extra hardware.
• It is very energy efficient, even 30 times better than Bitcoin's ASIC.
• Hard drives do not need to be upgraded.
  *The mining data can be easily removed and the drive can be used for other purposes.

DISADVANTAGES OF PoC

• It has yet not been adopted by many developers.
• Malware could affect the mining activities.
• If it gets widespread the there might be chaos for hard drives.

CONCLUSION

I am really greatful to the professor @alphafx for this homework task. I learnt a lot about Consensus Algorithm and its types, Proof of Capacity in particular. It was very informative to know that hard drives could be used for such purposes. I was very amazed to learn about the plotting and mining process in particular. I hope to put this information to use in the future. I would recommend all fellow Steemit members reading this post to participate in the homework assignments. I hope my post is in coordination with the requirements.

Thank You.

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