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ELI5 Proof of Stake (PoS) – How does PoS work?
In the cryptocurrency universe, Proof of Stake (PoS) is an alternative to the Proof of Work (PoW) consensus mechanism. How PoS Works While PoW guarantees that each network participant has performed a certain amount of work in order to receive a reward, Proof of Stake requires participants to prove that they are willing to guarantee […]
Proof of Elapsed Time (POET) Summary [Cryptocurrency consensus mechanisms]
In this poetically named consensus mechanism, network participants prove that they have slept for a random amount of time before being able to mint a block. POET was released by Intel in 2016 and was originally aimed at trusted computing using Intel CPU’s. A special instruction set called Software Guard Extensions (SGX) allows programs to […]
Proof of Activity (PoA) Summary [Cryptocurrency consensus mechanisms]
Proof of Activity (PoA) is a cryptocurrency consensus mechanism which combines Proof of Work (PoW) and Proof of State (PoW) into a hybrid mining system. In a PoA system, validators begin by applying a Proof of Work stage to block headers until they find a desirable hash. The block headers are then passed onto a […]
Proof of Capacity (PoC) Summary [Cryptocurrency consensus mechanisms]
Proof of Capacity (PoC) consensus algorithms require network participants to prove they have performed a certain amount of storage operations in order to mine a valid block. Where Proof of Work consensus requires users to prove they have performed computations in time (to guarantee a 10 minute space between Bitcoin blocks, for example), Proof of […]
Concepts In This Page
A process or system by which multiple parties are able to reach consensus. In the context of cryptocurrencies, it's the process which allows for everyone to agree on everyone else's money balance. E.g. Bitcoin employs Nakamoto consensus via PoW mining.