As climate change becomes more apparent, we should monitor and limit our carbon footprint.
So it looks like we are on to the greenest consensus algorithm yet.
What Is Proof of Capacity?
PoC employs less energy consumption than other models because it uses just your free memory size to verify blocks.
How Does the Proof of Capacity Algorithm Work?
Imagine going for a computer-based test with a list of possible answers on a hard drive.
The larger your hard drive, the more answers you’re able to store.
All possible nonce values are compiled on the hard drive via plotting, even before mining starts properly.
Each plotted nonce has 8,192 hashes, starting from 0 to 8,191.
All 8,192 hashes are paired into scoops, which are instrumental in the mining that will be done later.
It requires very little energy (about 4 watts) compared toother proof algorithm mechanisms.
For example, you come up with a deadline value of 20 seconds.
Block mining requires no energy consumption, making the PoC mechanism much greener than other consensus mechanism algorithm alternatives.
Low Energy Consumption
With the PoC consensus algorithm, energy consumption can be lowered by up to 96%.
Using this model is a step in the right direction in pursuing greener, cleaner mining and computing practices.
Low-Maintenance and Affordable
There is no need for expensive gadgets when using the proof of capacity mechanism.
It is as easy asmining from the storage of your Android phone.
Decentralized data pipe
Since largely everyone has some form of hard drive, PoC is highly decentralized.
This is a notable edge over the PoW algorithm model.
The storage remains yours to use.
Less Secure
With the increase in mining comes an increase in mining malware.
Favors Space Hoarders
The proof of capacity algorithm favors those with larger disk spaces.
More storage space is required as more miners are added to the online grid.
People can easily start purchasing humongous drives to mine a large chunk of the cryptocurrency.
This makes mining a lot more difficult if you have smaller drive sizes.
Limited Reach
Only a few developers use the PoC algorithm, unlike the PoW consensus algorithm.
Technical Issues
Technical issues as regards PoC algorithms can take several forms.
Proof of Capacity vs.
This provides the benefits of PoW andproof of stake (PoS)models without the downsides of either approach.
PoW consensus algorithms are slow and require tremendous computational powerlikeapplication-specific integrated circuits(ASICs).
PoS algorithms suffer from high centralization risks and the need for participants to provide deposits upfront.
Which Cryptocurrencies Use Proof of Capacity?
This involved using affordable, regular hard drives utilizing energy as low as 4 watts on average.
Signum can be used for crowdsourcing, payments, crypto contracts, and encrypted messaging.
SpaceMint
The proof of space mechanism used for mining the proposedSpaceMintcrypto employs a non-interactive format.
This sets it apart from other uses of the proof of capacity algorithm.
Chia connection
TheChia networkis one of the most popular proof of capacity (PoC) algorithm applications.
Chia is a blockchain-based platform designed to make decentralized and distributed storage more secure, reliable, and cost-effective.
In fact,Chia caused a worldwide increasein storage prices at launch!
However, Chia has been met with controversy due to its potential to wreak havoc on hard drives.
This has led some users to question the online grid’s security and its PoC model’s sustainability.
