Proof Of Capacity Consensus Algorithm

2022-04-22, 09:06

Several mechanisms govern the mining processes in the blockchain.

These consensus mechanisms are essential in validating blockchain transactions and creating new blocks.

One of those mining mechanisms is the Proof of Capacity protocol.

The Proof of Capacity (POC) consensus mechanism uses available hard drive space to validate transactions and decide mining rights in the blockchain.

The PoC consensus consumes little energy and is more efficient than Proof of Works and Stakes.

There are two steps involved in using Proof of Capacity in the blockchain network; plotting and mining.

Even though the PoC consensus consumes less energy, enables faster transactions, and is more efficient, its acceptability is low.

Mining in blockchain can take various processes and procedures, and you can use several mechanisms to create new blocks on the blockchain network.

The processes involved in deciding mining rights and nodes to validate transactions are numerous.

If the blockchain mechanism adopts consensus, you can now select which consensus algorithm best suits your blockchain technology.

One of these consensus mechanisms is the Proof of capacity (PoC).

In this article, we shall identify the definition of the Proof of capacity consensus algorithm, how you can use the PoC to validate transactions, and the pros/cons of the Proof of Capacity consensus algorithm.

What Is Proof Of Capacity (POC)?

Proof of Capacity (PoC) is a consensus mechanism that enables nodes and miners to mine in the blockchain.

Proof of Capacity allows for mining by using available hard drive space to decide mining rights and validate blockchain transactions.

PoC is a consensus algorithm that deploys spare hard drive space to store the solutions to a hashing problem in cryptocurrency.

The Proof of Capacity mechanism is more efficient than Proof of stake (PoS) or Proof of work (PoW).

Creating new blocks, hashing, and other mining activities in blockchain consumes high energy. However, the developers of Proof of Capacity have developed it to consume less power.

PoC consensus algorithm does not repeat hashing, and instead, it compiles and stores a list of possible solutions on the mining device's hard drive. So when the mining activity commences, it will deploy the available space.

Using the Proof of Capacity consensus algorithm, examples of blockchain apps include Storj, Spacemint, Chia, and Burstcoin.

How Does The Proof Of Capacity (POC) Work?

Image: ResearchGate

The Proof of capacity protocol is used in creating new blocks and validating transactions on the blockchain. However, it involves two-step processes and is plotting and mining.

Plotting
The first step is to plot the hard drive. Plotting involves listing all the possible numbers that the miners are solving for.

A plot is a file that contains pre-computed hashes. Miners use plots to forge blocks for the signum blockchain.

In the PoC plotting process, there is what we call Nonce. That is, "Number only used once." The Nonce is the number you add to a hashed or encrypted block, and it is a term used by miners in the blockchain.

In plotting, you continue to rehash data in a miner's account till you create nonce values. A single nonce that you can develop contains 8192 hashes.

All the hashes from 0 to 8192 are numbered and paired into scoops. So you will pair adjacent hashes and combine them to form a pair of two.

This process is called plotting in the Proof of Capacity (POC) algorithm.

Mining
The next step in the Proof of Capacity consensus algorithm is mining, and this step involves the actual mining exercise.

In this step, the miner calculates all the scoop numbers you created in plotting. You will continue to repeat the process for calculating the deadline for each Nonce contained in a miner's hard drive.

If a miner begins mining and generates the scoop at number 28, the miner will have to go to scoop number 28 of nonce 1. They will now use that scoop’s data to compute a deadline value.

The deadline value refers to the duration of time in seconds that must be exhausted since the last block was created. This period will determine when a miner can forge a new block.

However, if no miner has forged a block within this time, you can generate a new block and claim the reward.

After creating a new block, you can retrieve the correct combination of the hashes by mapping the nonces to the hashes stored on the hard drive.

Miners keep repeating the two steps in the Proof of Capacity protocol to create new blocks in the blockchain and validate crypto transactions.

Next on our agenda is to identify the Pros and Cons of PoC.

Pros Of The Proof Of Capacity Consensus Algorithm

These are the advantages of the Proof of Capacity consensus algorithm:
· The Proof of Capacity protocol can use any regular hard drive or computer storage device, and this consensus algorithm can use storage with an Android-based system.

· The PoC protocol is more energy conserving and energy-efficient than Proof of work and stake. It is reported that PoC is 30 times more energy-efficient than the ASIC-based mining processes in cryptocurrency.

· You can permanently and easily wipe off the mining data from the hard drive. You can reuse the hard drive for new blocks or other data storage.

· The Proof of Stake protocol ensures fast and low-cost blockchain transactions.

Cons Of Proof of Capacity Consensus Algorithm

These are the disadvantages of the Proof of Capacity consensus algorithm:

· The adoption of PoC consensus algorithms is slow, and several developers are running away from this protocol.

· There is a higher risk of malware attacks and mitigation in the Proof of Capacity protocol.

Conclusion

Experts believe that the Proof of Capacity consensus algorithm exchanges time for space in creating new blocks. In PoC, you do not have to solve trillions of hashes per second; all you need to do is to have stored the hashes in a free hard drive beforehand.

The PoC protocol benefits far outweigh Proof of Stake and Proof of work, and it is faster in completing transactions and consumes less energy.

Albeit, the vulnerability to attack and malware is a big issue, and this vulnerability is keeping developers away from deploying PoC in their blockchain platforms.

Author: Valentine A., Gate.io Researcher
This article represents only the researcher's views and does not constitute any investment suggestions.
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