dido:public:ra:xapend:xapend.k_consensus:02_mechanism:poa
Differences
This shows you the differences between two versions of the page.
| Next revision | Previous revision | ||
|
dido:public:ra:xapend:xapend.k_consensus:02_mechanism:poa [2021/07/16 21:25] nick created |
dido:public:ra:xapend:xapend.k_consensus:02_mechanism:poa [2021/08/13 14:01] (current) murphy |
||
|---|---|---|---|
| Line 2: | Line 2: | ||
| [[dido:public:ra:xapend:xapend.k_consensus:02_mechanism:start | Return to Consensus Mechanism ]] | [[dido:public:ra:xapend:xapend.k_consensus:02_mechanism:start | Return to Consensus Mechanism ]] | ||
| - | **Proof of Activity (PoA)** is basically a hybrid approach designed through the convergence of PoW and PoS blockchain consensus models. | + | Seth(( |
| + | Shobhit Seth, | ||
| + | Investopedia, | ||
| + | __Proof of Activity__, | ||
| + | 1 April 2021, | ||
| + | Accessed: 18 July 2021, | ||
| + | [[https://www.investopedia.com/terms/p/proof-activity-cryptocurrency.asp]] | ||
| + | )) provides the following definition: | ||
| - | In the case of PoA mechanism, miners race to solve a cryptographic puzzle at the earliest using special hardware and electric energy, just like in PoW. However, the blocks they come across holds only the information about the identity of block winner and reward transaction. This is where the mechanism switches to PoS. | + | //**Proof of Activity (PoA)** is a [[dido:public:ra:xapend:xapend.a_glossary:b:blockchain|blockchain]] [[dido:public:ra:xapend:xapend.a_glossary:c:consensus_algorithm|consensus algorithm]] used in cryptocurrencies and similar systems. It is used to ensure that all transactions occurring on the blockchain are genuine, as well as to ensure that all miners arrive at a consensus. PoA is a combination of two other blockchain consensus algorithms: [[dido:public:ra:xapend:xapend.a_glossary:p:proof_of_work|proof-of-work (PoW)]] and [[dido:public:ra:xapend:xapend.a_glossary:p:proof_of_stake_pos|proof-of-stake (PoS)]].// |
| + | |||
| + | //[[dido:public:ra:xapend:xapend.a_glossary:b:bitcoin|Bitcoin]], the most popular [[dido:public:ra:xapend:xapend.a_glossary:c:cryptocurrency|cryptocurrency]], uses the PoW consensus algorithm. A special feature of this algorithm is that it increases the [[dido:public:ra:xapend:xapend.a_glossary:d:difficulty|difficulty]] level of the [[dido:public:ra:xapend:xapend.a_glossary:m:mining|mining]] as time passes by. This method also prevents the bitcoin network from being hacked. However, because the difficulty of mining increases more and more computing power must be used. As a result of there being more energy consumption, there are more costs involved (including the costs of wear and tear on the hardware).// | ||
| + | |||
| + | |||
| + | //With a PoW system, a miner can mine or validate transactions based on the amount of effective work they have already contributed to the blockchain. As energy and hardware costs spiraled upwards, as a result of increased mining difficulty in PoW networks, the PoS system emerged as an alternative.// | ||
| + | |||
| + | |||
| + | //With a PoS system, a miner's ability to mine or authenticate transactions depends on how many cryptocurrency [[dido:public:ra:xapend:xapend.a_glossary:c:coins|coins]] they hold. Although the PoS system achieves a reduction in electricity bills, an unintended side effect of it is that it can promote coin hoarding (rather than spending).// | ||
| + | |||
| + | //Both PoW and PoS systems are intended to prevent the likelihood of a 51% attack—a situation where a group of participants gains control of more than half the network's mining computing power. The danger of a 51% attack is that that group can then have full control of the network, including the power to halt new transactions from getting confirmed, stop payments between various blockchain users, and even reverse the transactions completed in the past during their control of the network, allowing them to double-spend the cryptocurrency coins.// | ||
| + | |||
| + | //PoA also prevents the chance of a 51% attack, like in POW and POS, because it is impossible to predict who the signing peer would be in the future, and coin-saving competition among signers does not allow the computing power to be accumulated within a group.// | ||
| - | The validators (shareholders appointed to validate transactions) test and ensure the correctness of the block. If the block was checked many times, the validators activate to a complete block. This confirms that open transactions are processes and are finally integrated into the found block containers. | ||
| - | Besides, the block reward is divided so that validators gain shares of it.[[dido:public:ra:xapend:xapend.k_consensus:09_ref:bhardwaj]] | ||
| /**=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=- | /**=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=- | ||
dido/public/ra/xapend/xapend.k_consensus/02_mechanism/poa.1626485108.txt.gz · Last modified: 2021/07/16 21:25 by nick
