When it comes to cryptocurrency mining, most people are only aware of the proof-of-work mining system and the prove-of-stake system. That’s because these are the systems associated with the two foremost cryptocurrencies, and that’s Bitcoin and Ethereum. Bitcoin uses the proof-of-work mining algorithm which rewards people who solve problems on the blockchain to come up with new bitcoins. On its part, Ethereum is planning to start using the prove-of-stake algorithm which rewards people for holding Ethers in their wallets. However, for someone looking to invest in mining for the long run, the future is in neither of the two. The future is in the prove-of-capacity system.
Advantages of the prove-of-capacity over the proof-of-work and prove-of-stake
- It doesn’t require expensive power and processors
Unlike the proof-of-work and prove-of-stake algorithms
that require expensive power for them to create new coins, the prove-of-capacity mining algorithm makes use of ordinary hard drives to generate new coins. This makes it highly efficient since it doesn’t create new and unnecessary energy demands, in a world that is already dealing with energy issues, and the resultant effects of global warming and climate change.
- It is inherently more secure
Security is one of the areas where the prove-of-capacity mining algorithm triumphs over the other two. That’s because it is focused on a small part of the blockchain, which is the hard drive. This makes it easy to secure than the entire blockchain approach taken by the proof-of-work and prove-of-stake algorithms. Besides, miners in the prove-of-capacity algorithm are incentivized with new coins, if they put in place more measures to secure the hard disk that they are using for mining. This creates an extra and important layer of security that is missing in the other two mining algorithms.
- It is more decentralized
Unlike the other two mining algorithms, the prove-of-capacity algorithm allows for anyone with a hard disk to mine. This makes it a truly decentralized system, which is the whole essence of
blockchain technology. That’s quite different from the other two mining algorithms that concentrate power in the hands of the wealthy. That’s because they reward those who can afford expensive mining hardware and high energy bills, as well as those who can hold large amounts of coins in their wallets. This makes the prove-of-capacity algorithm the future of blockchain since it decentralizes mining power, just like blockchain technology was intended to do.
Which cryptocurrency can one mine with the prove-of-capacity algorithm?
Currently, only burst coin can be mined using the prove-of-capacity algorithm. However, as the technology becomes better-known and its capabilities improved over time, there is no doubt that it will become the mining benchmark of the future.
How to mine using the prove-of-capacity algorithm
For you to mine with the prove-of-capacity algorithm, you just need a normal hard drive and access to the Burst coin system. From there, burst divides your hard drive into multiple segments. When doing this segmentation, it calculates to determine whether the nonce from a hash that qualifies for mining is valid. If it is, the system randomizes to come up with a bucket in which to place the result, the result being a new burst coin.