Proof-of-Capacity (PoC) is defined as a blockchain consensus algorithm used to mine cryptocurrency. Miners have to use the empty space of their hard drive for mining purpose. Computing powers and stakes are not required in PoC. Burstcoin (BURST) is defined as a digital cryptocurrency and payment system using PoC.
PoC emerged as a solution for two problems:
Problem 1: A huge amount of energy is required in PoW
Problem1: Crypto coin hoarding is promoted in PoS, but crypto coin spending is not promoted.
How Does PoW Work?
- Miners try to change a number in the block header of a block quickly with the objective to find a correct hash value
- If a miner identifies the correct hash value at the first, then this information will be broadcasted
- If other miners validate and authenticate the transactions of the block, then they will be able to move towards the next block
- If the miner doesn’t find the correct hash value, then he will keep changing the hash value
- It is just like a lottery system
How Does PoC Work?
Plotting and mining are the two-steps involved in Proof-of-Capacity (PoC).
In the first step:
- The repeated hashing of data is a must for the creation of a list of possible nonce values
2. 8192 hashes are contained by a nonce. They are numbered from 0 to 8191. Scoops are constituted by pairing the hashes. A pair is formed by adjacent hashes.
Example 1: hash 0 and 1 constitute scoop 0
Example 2: hash 2 and 3 constitute scoop 1
In the second step:
- The mining of a particular cryptocurrency is started
- A scoop number 38 is generated by a miner
- The miner goes to the scoop number 38 of nonce 1
- The miner calculates a deadline value
- The calculation of the deadline value requires using the data of that scoop
- Some nonces are there in the hard drive of the miner
- The repeated process is required for the calculation of the deadline for each nonce
- The miner calculates all the deadlines
- The miner selects a nonce with the minimum deadline
The chance for the creation of the next block can be secured when a minimum deadline of 36 seconds is there for a miner and the block can’t be created by other miners within the next 36 seconds.
In Proof-of-Capacity (PoC), regular hard drives with Android-based systems mining is more energy-efficient as compared to ASIC-based mining. Dedicated hardware and the constant upgrading of hard drives are not required. Miners can wipe-off mining data. They can re-use their drives for the purpose of other data storages.