"Consensus and Proofs" TAG

Nothing-at-Stake Problem
  • glossary
The “nothing-at-stake” problem refers to the fact that block creators on generic proof-of-stake protocols do not have anything at stake when the network forks. This is one of the primary criticisms of proof-of-stake consensus mechanisms. When a proof-of-work based network, like Bitcoin, forks, every active miner creating blocks on the network must *choose* which fork...
Nakamoto Consensus
  • glossary
Nakamoto Consensus is the consensus mechanism employed by most Proof-of-Work blockchains, most notably Bitcoin. Its name derived from the Bitcoin creator’s pseudonym, Satoshi Nakamoto, Nakamoto Consensus states that the longest chain of verified blocks existing within a network of nodes is valid, and all others are to be ‘orphaned.’ In essence, nodes on the network...
Proof of Capacity (PoC)
  • glossary
Proof of Capacity (PoC), or Proof of Space (PoSpace), is a consensus mechanism used to prove that a miner has dedicated a sufficient amount of their physical storage to a given endeavor. While Proof of Stake and Proof of Work methods use stake size and computing power, respectively, to determine who is able to verify...
Hybrid PoW/PoS
  • glossary
Hybrid Proof of Work/Proof of Stake consensus mechanisms utilize elements of both PoW and PoS models when determining transaction validation rights. In doing so, they aim to mitigate the respective weaknesses of each. While the exact mechanisms of individual hybrid consensus algorithms vary, the following explanation is based on Decred, perhaps the most notable project...
Leased Proof of Stake (LPoS)
  • glossary
Proof of Stake (PoS) is an alternative consensus mechanism from Proof of Work (PoW). The key distinction between the two methods is that, while both incentivize miners (or validators, as they are called in PoS models) to confirm and add transactions to the blockchain, their respective processes for doing so vary. In PoW models, miners’...
Directed Acyclic Graph
  • glossary
Directed Acyclic Graph (DAG) is a distributed ledger system that serves as an alternative to blockchain systems. Blockchains use a single, linear chain of blocks with each block referencing its predecessor. When the the blockchain splits into two, a temporary fork is created and the shorter branch of the chain is orphaned (and the work...
Proof of Spacetime (PoSt)
  • glossary
Proof of Spacetime (PoSt) is a novel consensus mechanism utilized by the Filecoin protocol, which awards native protocol coins to users who store data for other users. Proof of Spacetime, along with Proof of Replication, is part of the decentralized storage network’s Proof of Storage model. Proof of Spacetime enables storage providers (the miners of...
Consensus
  • glossary
Consensus is used in several contexts in crypto, in ways drawing from its wider meaning as ‘a collective judgment’ or either referring to or suggesting analogy to ‘blockchain consensus.’ ‘Blockchain consensus’ and ‘consensus mechanisms’ more narrowly refer to a family of processes for synchronizing network nodes and determining what data is included on a blockchain...
Proof of Authority (PoA)
  • glossary
PoA is variant on the Proof of Stake consensus method. Rather than user’s voting on the version of events recorded in the ledger with voice in proportion to the size of their staked capital, validators have equal votes and earn them in virtue of staking their personal reputation on their decision. PoA was first employed...
Proof of Importance (PoI)
  • glossary
Proof-of-Importance (PoI) is a blockchain consensus mechanism introduced by NEM. PoI reward users that actively transact on the network, building on proof-of-stake. With PoI, nodes need to vest an amount of currency to be eligible to create blocks and are selected to create a block roughly in proportion to a score quantifying their contribution to...
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