We are quite familiar with basic consensus mechanisms such as Proof of Work (PoW) or Proof of Stake (PoS) that have been advanced through many different periods of development. In this article, let’s join Weakhand to learn about what is Proof of Contribution? Does PoW or PoS really solve the problems?
What Is Proof Of Contribution?
Proof of Contribution (PoC) is a new consensus method in blockchain networks in which users need to provide proof that they have contributed to the network to help keep it running.
These contributions can include tasks such as building new blocks, storing data, or doing other work to support the blockchain network. The amount of each user’s contribution can be evaluated by a token amount or other weight, and the user gets a reward corresponding to his or her contribution.
PoC is seen as an energy-saving solution compared to the Proof of Work (PoW) method in which miners can use computing power to solve difficult calculations to contribute to the network.
Mechanism of Operation of PoC
PoC’s operating mechanism is to encourage users to participate in maintaining the operation of the blockchain network:
- Users sign up to participate in the blockchain network and register a certain amount of tokens or other assets as part of their contribution.
- The network determines the tasks required to keep the blockchain running and conducts analysis to calculate the corresponding reward for each task.
- Users can choose tasks that suit their skills or time and start contributing through activities such as building new blocks, storing data, or supporting other transactions.
- Once users have completed their task, the network checks and verifies the relevant information to ensure that it is trustworthy and actually contributes to the functioning of the blockchain.
- Then, the system automatically provides corresponding rewards to users based on their contribution level and previously registered tokens or assets.
Advantages Of Proof Of Contribution
The advantages of PoC are:
- Energy saving: Because PoC does not require complex calculations from contributors, it does not take too much energy to run compared to Proof of Work.
- Fair: PoC helps ensure fairness and transparency in the distribution of rewards when contributing to the blockchain network. Each user will be rated and evaluated according to the level of their contribution.
- Ability of extension: The PoC system can be expanded to meet the needs of an increasingly larger blockchain network without affecting user contribution status.
- Flexibility: PoC is also very flexible, allowing users to stake and contribute to the network in various activities such as building new blocks, storing data or supporting other transactions.
- Low participation cost: Because the amount of tokens that users need to stake is not too large, it is much more economical than the Proof of Work consensus method, thereby easily attracting more participants to contribute to the network.
- Difficult to attack 51%: Because participating in consensus on the PoC network requires certain contributions, attacking 51% of blockchains using the PoC mechanism is almost impossible.
Disadvantages of Proof Of Contribution
PoC also has certain limitations in contributing to blockchain operations as follows:
- Decentralization is reduced: PoC requires users to register and provide some amount of tokens or other assets to contribute to the blockchain network. This can reduce the decentralization of the network if participants are unwilling or unable to register large amounts of assets.
- Not optimal for large data storage: PoC is very effective in contributing to blockchain operations, but is not always optimized for large data storage, especially as blockchain networks grow.
- Security issue: PoC requires users to provide information regarding the amount of tokens or other assets to register and contribute. This can increase security risks and lead to information security issues.
Blockchains Using PoC Mechanism
Mina Protocol
Blockchain Mina Protocol is a type of blockchain with small size and implements Proof of Stake (PoS) and Proof of Contribution (PoC) to solve the problems of large data volume and processing speed.
All users of Mina Protocol can participate in Proof of Contribution to process transactions and blocks using simple devices such as smartphones or personal computers. That way, Mina Protocol can maintain a low network footprint and achieve interaction with dApps without any special computer configuration requirements from users.
Swarm Network
Swarm Network is a decentralized platform that allows encrypted data storage and transmission on a P2P network. It allows users to store and retrieve different types of data, such as video, audio, images, and decentralized applications.
Swarm Network uses Proof of Stake (PoS) and Proof of Contribution (PoC) to verify transactions on the network. PoC in Swarm Network is implemented by adding the contribution evaluation feature during user activities on the network.
Every time a user participates in network activity by storing or transmitting data, they will be evaluated on their contribution to the PoC system. These contributions are verified by randomly selected consensus workers and contribute trustworthiness to the network.
Summary
Above are the things you need to know to understand what Proof of Contribution is? Weakhand hopes that through this article, everyone will learn good knowledge to support their research process.
