What Are Proof-of-Capacity Tokens?
Consensus algorithms play a crucial role in blockchain networks and cryptocurrency ecosystems. Proof-of-Capacity (PoC) is an intriguing option, as it allows for mining activity through hard drive space. Such an approach has multiple advantages, and numerous projects explore this option today.
The Purpose of Proof-of-Capacity
While it is not a standard consensus algorithm, Proof-of-Capacity has a certain appeal for blockchain and cryptocurrency ecosystems trying to approach global adoption. As everyone has a device with hard drive storage at their disposal, it becomes a lot easier to partake in such projects. There is no need for dedicated mining hardware or staking funds in a wallet connected to the internet 24/7.
Instead, Proof-of-Capacity lets users leverage space on their hard drive to mine a crypto-asset native to the network. PoC Stores a list of possible solutions on the device’s hard drive before any “mining” activity even begins. Users with a bigger hard drive can store more possible solution values, resulting in a better chance to win mining rewards.
As this consensus algorithm works with any hard drive, including mobile devices, it is more energy-efficient, and users can re-use the hard drive once they stop mining. Nor do users need to upgrade their hardware constantly unless they want to increase their available hard drive space for the mining process.
Projects Using PoC
Chia cryptocurrency should be easier to use than cash, harder to lose, and nearly impossible to steal. Anyone who wants to validate transactions should be able to farm without single-use hardware or a big electricity bill.
On February 9th we released our Business Whitepaper and mainnet launched for farming rewards on Friday March 19, 2021. Transactions were enabled on May 3, 2021. You may also be interested in our new consensus working document which was implemented first in Beta 19 on January 12, 2021.
Chia Network develops a blockchain and smart transaction platform created by the inventor of BitTorrent, Bram Cohen. It implements the first new Nakamoto consensus algorithm since Bitcoin in 2008. Proofs of Space and Time replace energy intensive “proofs of work.”
Chialisp is Chia’s new on chain programming language that is powerful, easy to audit, and secure. It will make cryptocurrency easier to use than cash or credit.
An example of PoC comes in the form of Burstcoin. The team intends to explore many different use cases, ranging from payment solutions to smart contracts and crowdfunding to arbitrary messages. By providing an appealing concept to consumers, businesses, developers, and miners, Burstcoin is a worthwhile project to explore the potential of PoC.
An example of PoC comes from BitcoinHD. Compared with POW mining, cPOC mining saves energy, consumes much less power, has lower noise, no heat, and is anti-ASIC. cPOC-mining-based BHD can realize the original intention of Satoshi Nakamoto ---- everyone can become a miner.
While the proof-of-capacity concept remains mostly unexplored, empowering users by letting them leverage excess hard drive space is a big step forward. Not only is it a “greener” way to mine cryptocurrencies, but it also creates a fairer distribution model. Everyone in the world has a device with hard drive space they could allocate to these purposes.
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