Consensus Algorithms, Blockchain Technology and Bitcoin at UCL - by Andreas M. Antonopoulos
In-depth explanation of Consensus Algorithms, the origin of blockchain technology and the technical workings of bitcoin.
aantonop Via youtube.com
Lecture given on Jan 31, 2016, by Andreas M. Antonopoulos with the Department of Computer Science, at University College London
Proof of stake
Proof-of-stake (PoS) is a type of algorithm by which a cryptocurrency blockchain network aims to achieve distributed consensus. In PoS-based cryptocurrencies the creator of the next block is chosen via various combinations of random selection and wealth or age (i.e. the stake). In contrast, the algorithm of proof-of-work (PoW) based cryptocurrencies (such as bitcoin) rewards participants who solve complicated cryptographical puzzles in order to validate transactions and create new blocks (i.e. mining).
Proof of Burn
Proof of burn is a method for distributed consensus and an alternative to Proof of Work and Proof of Stake. It can also be used for bootstrapping one cryptocurrency off of another.
The idea is that miners should show proof that they burned some coins - that is, sent them to a verifiably unspendable address. This is expensive from their individual point of view, just like proof of work; but it consumes no resources other than the burned underlying asset. To date, all proof of burn cryptocurrencies work by burning proof-of-work-mined cryptocurrencies, so the ultimate source of scarcity remains the proof-of-work-mined "fuel".
Proof of capacity
This particular “mining” algorithm requires users to share their available hard drive space. It is quite similar to another concept known as proof-of-space, although it seems to be slightly more advanced. More specifically, proof-of-capacity requires users to allocate large amounts of hard drive space to start generating new coins. In most cases, this hard drive space is used as “plots” to store large amounts of data.
Proof of activity
The PoA protocol seeks to decentralize the power that synchronizes the transactions in a quite pronounced
fashion. To monopolize the block creation process, an attacker needs to control a substantial fraction of the
total amount of coins that have been generated thus far. We argue that in likely scenarios the cost of an
attack would be much higher with the PoA protocol than with Bitcoin’s pure PoW protocol. Furthermore,
the PoA protocol is likely to accomplish other beneficial properties, namely an improved network topology,
incentives for maintaining full online nodes, low transaction fees, and a more efficient energy usage.
Great stuff! Thanks.
Great work @isacoin to put all this stuff together. Very useful post. Thanks for your effort!
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