Proof of Capacity And Proof of Authority Consensus Algorithm
What is a consensus Algorithm?
A consensus algorithm is used to obtain certain agreement or transactions on a single data value over decentralized systems. Consensus algorithms are designed to achieve reliability in a network involving many different ledgers which are then verified through reliability algorithms.
Below are the types of Consensus algorithms:
- Proof of weight
- Proof of importance
- Proof of work
- Proof of stake
- Proof of capacity
- Proof of Burn
- Proof of Activity
- Leased proof of stake
- Proof of elapsed time
- Proof of authority
Proof of Capacity:
Proof of capacity is a consensus algorithm that is used in blockchains and allows for mining the devices in the network and use hard drive space to decide mining rights and validate transactions. This is different in respect of using the mining device’s computational power or the miner’s stake in the cryptocurrencies.
Use Cases:
The famous blockchain that is using the proof of capacity algorithm is Storj, Chia, and SpaceMint.
Pros and Cons over proof of work and proof of stake:
- Proof of capacity algorithm generates plots which are large data sets in comparison with proof of work and proof of stake.
- Proof of capacity data set is stored on the hard drive
- Proof of capacity has a greater number of plots on the hard drive which makes it faster to find out the next block
- In this algorithm, we need to heavily invest in buying the hard drive to enhance selection.
Proof of Authority:
In this specific type of algorithm, unlike proof of stake where miners stake their coins of money and get the chance. In proof of authority, miners stake their reputations. So basically, the transaction is verified by some approved accounts. The Proof of Authority algorithm relies on a limited number of block validators and this is what makes it a highly scalable blockchain systems.
Use cases:
Vet (Vechain) blockchain is the classical example of Proof of Authority
Pros and Cons over proof of work and proof of stake:
- Transections increased exponentially as compared to proof of stake.
- Electricity power is very less used.
- The computation power is very less than POW
