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.

Conclusion

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.

Thanks for reading,

ProTrader Mike

Disclaimer: MOJO Day Trading is a provider of stock market entertainment and education. MOJO Day Trading is not a registered as an investment adviser either with the U.S. Securities and Exchange Commission or any other federal, governmental or regulatory authority. The business services and activities of MOJO Day Trading do not requires any such registrations. You understand and acknowledge that there is a very high degree of risk involved in trading securities. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented are for educational purposes only. Such picks, alerts, set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

Please note: Hypothetical computer simulated performance results are believed to be accurately presented. However, they are not guaranteed as to accuracy or completeness and are subject to change without any notice. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Since, also, the trades have not actually been executed; the results may have been under or over compensated for the impact, if any, of certain market factors such as liquidity, slippage and commissions. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any portfolio will, or is likely to achieve profits or losses similar to those shown. All investments and trades carry risks.

While MOJO Day Trading accepts payment to publish press releases, sponsored videos and articles, we do not endorse and cannot guarantee any claims made in those content pieces. None of the content published on MOJO Day Trading should be construed as investment advice. We strongly advise our readers to always do their due diligence before investing in any stock, futures, cryptocurrency, blockchain project, or ICO, particularly those that guarantee profits. Furthermore, MOJO Day Trading does not guarantee or imply that the stocks or cryptocurrencies or projects published are legal in any specific reader’s location. It is the reader’s responsibility to know the laws regarding stocks, cryptocurrencies and ICOs in his or her country.

Terms & Conditions & Disclaimers https://www.mojodaytrading.com/conditions