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What is capacity proof algorithm? | Poc algorithm

What is capacity proof algorithm? | Poc algorithm

The proof of capacity algorithm or Poc or Proof Of Capacity is another algorithm used in blockchain. Instead of using processing power, users use their storage space to prove capacity. For this, users create a bookmarked space in their storage space. Users prove their capacity to find the right hash. This algorithm reduces power consumption and processing costs by blockchain. In addition, using the POC algorithm, people can share their storage space in the network with other users and compete with them. In this way, they can be rewarded by winning this competition. POC algorithm is used in many blockchain systems. This algorithm increases the security and efficiency of the network and has become one of the most popular blockchain algorithms.

Read more: What is a smart contract?

Among the advantages of this algorithm is that users receive rewards. To receive this bonus, it is enough for users to share their storage space; This sharing does not require high processing power. Therefore, any user with any space can participate in the blockchain network and earn money in this way. Medical expenses and power consumption are also greatly reduced. One of the blockchains that uses this system is the Chia blockchain. This reward system is also used in the Burstcoin blockchain system. By using this algorithm, the power consumption and processing costs of the blockchain are reduced; Since the storage space is available to users, it becomes easier for people to participate in the network.

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How does the Poc algorithm work?

This algorithm allows users to use their storage space instead of using blockchain processing power to prove capacity. This algorithm is rewarded based on the storage space each person shares in the blockchain network. At first, users must mark their free space and then create a mark from their storage space for each new block in the network using the marking algorithm. This token contains the number of storage data hashes that have been combined. After this step, they prove their storage space by solving a simple computational problem such as finding a suitable hash. The reason for doing this is to find the hash combined with the token stored by the user.

This allows them to prove to the network what calculations their storage is capable of solving. After doing so and proving their storage space, they receive a reward for each new block created in the network. This reward can be an amount of any digital currency whose type can be specified by users. In general, the more shared storage space, the more rewards you’ll receive.

Read more: What is Alice’s game?

What are the advantages and disadvantages of the Poc algorithm?

Proof of capacity algorithm has many benefits for both the blockchain network and the users who use it. This algorithm reduces processing costs and power consumption in the blockchain network. This algorithm does not require a lot of storage space, unlike the POW algorithm, which in Bitcoin requires a lot of storage space with very high costs to solve calculations. By means of this algorithm, it becomes possible for many people to participate in blockchain networks, and many people can earn money in this way. The reason for this easy access is that a lot of storage space is not required to participate in the blockchain. The security of this algorithm is more than the POW algorithm; Because in the POW algorithm, it is possible to change the history of the blockchain through a 51% transfer; But it is impossible to prove capacity in the algorithm.

Of course, this algorithm also has disadvantages. The speed of confirming transactions in this algorithm is low; Because it takes more time to confirm transactions according to the way the Poc algorithm works. Also, in order to increase their storage space, users need to buy new equipment, which brings a lot of costs to users. Among other algorithms used in blockchain networks; It is a proof of credit algorithm or POA algorithm. To learn about this algorithm, read the article.


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