Proof of Space and Time is a consensus mechanism, with some major differences from the previous well known consensus methods - proof of work and proof of stake, used by some of the blockchains.
The proof of work protocol is used to mine Bitcoin, and requires node operations for solving difficult mathematical problems. That way, it earns the ability to validate the transactions, in exchange for a given amount of the native cryptocurrency of the blockchain.
The proof of stake protocol requires node operations to stake a given amount of the native cryptocurrency of the blockchain, so it can validate the transaction and earn a reward. Solana is an example of a major blockchain, using proof of stake consensus mechanism.
Ethereum, on the other side, is moving from proof of work to a proof of stake consensus model.
The problem with proof of work and proof of stake consensus mechanisms
One of the biggest issues in blockchain has been the development of a consensus method that is both egalitarian and environmentally friendly.
The proof of work consensus mechanism is energy-intensive, and has raised some environmental concerns. Actually, estimations are that almost 2% of the world’s electricity output is used for mining Bitcoin, and this leads to increased pollution and atmospheric carbon dioxide levels.
On the other hand, the proof of stake protocol is more environmentally friendly, and this is one of the reasons it is a commonly used alternative to PoW. However, it still requires significant financial resources.
It must be clear that it is not so easy to make a significant impact on network governance, but at the same time there is a desire for a consensus mechanism providing a more egalitarian approach, so that more people could influence the way the network is governed. This is where the proof of space and time protocol comes in handy.
What is the proof of space and time consensus protocol?
Proof of space and time allows individuals to take part in the consensus process, without the need to use proof of work or proof of stake protocol. This is possible thanks to the allocation of a given amount of a computer hard drive space for a certain amount of time, for validating blocks, and participating in the governanting of a blockchain. Proof of space and time is also known as proof of capacity.
In its basics, the proof of space is a piece of data sent by the prover to a verifier to prove that there is a certain amount of space reserved. The process has to be efficient, namely, and consume a small amount of space and time. Furthermore, it has to be hard to pass the verification if one does not reserve the given amount of space, because of security concerns.
What are the drawbacks of the proof of space and time mechanism?
The proof of space and time protocol seems like an interesting solution to many problems created by the proof of work and the proof of stake mechanisms. However, it is not perfect and could also lead to some problems.
There are not many blockchains using the proof of space model, and not many developers who have adopted the system.
And just like the traditional consensus method, the blockchains using proof of space protocols are vulnerable to hacking, malware, and other malicious activity
As we know, the crypto world is volatile. While it may seem to have a great future and bring major profits to investors, there are also many risks involved. This is why we always suggest you do good research, and never invest more than you are willing to lose.
Cryptoarbi is an automated crypto arbitrage platform. All you need to do is choose a subscription plan, and we will do the work for you!