Consensus Mechanisms. Part II
By: Sara Ray
Tags: Cryptocurrency, Proof Of Stake, Bitcoin

Proof of Storage (PoS)- PoS was invented in 2013. Proof of Storage does not run on the blockchain system- it uses a blocktree. Users will be noticed only of the transactions that are relevant to them: PoS does not show every single transaction made in the blocktree: in every single blocktree there is a blockchain.

What does staking mean? It is a process that each wallet uses for transaction validating and then awarding you with a specific amount of coins. In staking process transactions made are checked because of security reasons such as authenticity of the transactions, safety etc. When staking process is complete with most wallets agreeing on the rightness of the transaction then it is accepted by the network.

Coin- Storj

Proof of Stake Time (PoST)-Vericoin digital currency was the first using PoST system. Proof of Stake Time system’s intention is to avoid making the rich richer which generally happens in Proof of Stake systems. PoST does not use the amount of coins to calculate the age: it uses a specific time period of the coins being held on one’s address. Proof of Stake Time introduces the consensus system with a time component- so the stake probability should increase over a certain time period.

Pros- PoST is a very secure system and it strengthens the decentralization of the consensus

PoST is a very secure system and it strengthens the decentralization of the consensus Coin-Vericoin

Proof of Activity (PoA)-Proof of Activity is basically a mix between Proof of Work and Proof of Stake systems. The main point in this system is to bring together the best of Proof of Work and Proof of Stake- resulting in Proof of Activity. PoA process begins just like in Proof of Work (different miners competing with each other in order to find a new block). When the block is found (mined) system automatically switches over to Proof of Stake. This new block mined contains the miner address and header details. One of the advantages is the more crypto coins one holds the higher are the chances as being selected as a signer. The newly found blocks only gain authenticity as a whole when it’s signed by all validators- after that transactions can be recorded on it.

Pros– low transaction fees and good energy usage.

Cons-centralization risks

Proof of Burn (PoB)-this means providing evidence of your burned coins in order to make transactions. Proof of Burn method can only be used with coins that are mined from Proof of Work cryptocurrencies. Users that are using Proof of Burn are basically trying to the burn the highest amount of coins in order to be rewarded with a new block. Proof of Burn births new coins by destroying the values of older ones.

Proof of Capacity (PoC)- PoC is also known as Proof of Capacity. This system is running on Hard Drive Mining in order to validate new blocks. The first coin to use PoC was Burstcoin. The algorithm is used to create bulks of new data (plots) by hashing public keys. The more space one has on a computer hard drive, the more likely he/she is to successfully mine a block.

Coin- Burstcoin

Proof of Checkpoint (PoC)-This sytem utilizes any Proof of Stake system with a Proof of Work processes. The main point in this system is to protect Proof of Stake system from possible attacks. There is no way to give a 100% protection because when a node has been offline for a longer period of time the percentage of a possible attack rises. Proof of Work block has to be mined every once-in- a -while for the Proof of Stake system to function. This system functions as such.