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RE: Cryptocurrency Mining: Proof of Capacity (PoC)
The HDD gets filled with plots, these plots of data contain solutions to the problems generated by the chain to create a block. To put it simple, in proof of work, the network generates the problem and sends it to the GPUs and ASICs to solve it. In PoC, the solutions are already created and stored in the HDDs so when the network creates a problem, it selects a solution at random from the many plots of data available in the network.