The Evolution of Proof of Work and Emergence of PoWtS
The cryptocurrency space has evolved over the last decade and a half, thanks to the emergence of Bitcoin. The evolution has been both technical and financial. In the technical aspect, the Proof of Work (PoW) mechanism began it all but over the years, we have seen the emergence of other consensus mechanisms, including the Proof of Stake.
While newer consensus mechanisms have emerged, PoW remains a crucial part of the blockchain ecosystems as it powers Bitcoin and new protocols such as Neurochain AI.
What Is Proof of Work (PoW)?
Proof of work (PoW) is a blockchain consensus mechanism is the oldest consensus mechanism in the blockchain ecosystem and it requires significant computing effort from a network of devices.
Proof of work (PoW) is a blockchain consensus mechanism that requires significant computing effort from a network of devices. Some blockchains use PoW to demonstrate that a program did the work required to propose a new block for the chain
The mechanism works by sending the information in a block through a hashing algorithm. The variable fields are adjusted until a hexadecimal number is reached that has a lower value than the network's difficulty target. This is the proof that the program expended the computational effort to "hash" the block until a problem was solved.
What Is the Difference Between Proof of Work and Proof of Stake?
Proof of Work and Proof of Stake are the most popular consensus mechanisms in the crypto ecosystem. With PoW, nodes on a network are required to provide evidence that they have expended computational power to achieve consensus in a decentralized manner. It also helps them to prevent bad actors from overtaking the network.
Proof of Stake (PoS) on the other hand requires collateral (usually staked cryptocurrency) to become a trusted participant. PoS usually requires less energy and currently powers some of the leading blockchains including Ethereum.
The Evolution of Proof of Work
Proof of Work was the first to emerge and it powers the Bitcoin blockchain. However, it is too energy-intensive, which makes it less eco-friendly compared to the other mechanisms.
Proof of Work Through Staking is an evolution of PoW as it merges PoW with PoS, the two leading consensus mechanisms. One project that leverages the Proof of Work through Staking (PoWtS) is NeurochainAI.
NeurochainAI is a one-stop shop for all the tools necessary to build and use AI dApps. NeurochainAI platform is composed of a Consumer-grade GPU Decentralized Physical Infrastructure Network (DePIN) AI compute, a data layer including Community-powered data collection & validation, and dApp layer including an AI model marketplace, an AI dApp store, and interoperability tools.
Its PoWtS mechanism works by AI Mining Node receiving AI compute tasks, processing the message, and computing the response. This is similar to cryptographic calculations on regular PoW blockchain.
The AI compute acts as a PoW on the NeurochainAI Layer-3 (NCN AI L3) and has to be validated by Neuron Validator Nodes through PoS on NCN Chain L1. This ensures that
AI Mining Nodes receive rewards for the work (AI computations performed on the DePIN) and Neuron Validator Nodes receive rewards for mining new coins in relation to validating these responses and filtering out bad actors, punishing bad responses, misinformation, and misconfiguration.
The PoWtS ensures seamless, scalable, and integral operation of the NeurochainAI ecosystem.
Beyond PoW and PoS: Emerging Consensus Algorithms
While PoW and PoS are the two popular consensus mechanisms, others have emerged thanks to technological advancements in the blockchain ecosystem.
Delegated Proof of Stake (DPoS)
This mechanism builds on the principles of Proof of Stake but comes with a democratic element. In this mechanism, token holders select a small number of delegates to validate transactions and secure the blockchain. The approach seeks to boost network efficiency and scalability while maintaining decentralization.
Practical Byzantine Fault Tolerance (PBFT)
The Practical Byzantine Fault Tolerance (PBFT) is a mechanism that involves communication rounds between nodes in a bid to ensure agreement on the next block. Thus providing high throughput and low energy consumption.
Proof of History (PoH)
Proof of History, or PoH, is a new and innovative consensus mechanism that verifies the passage of time between events. This mechanism cryptographically proves that certain transactions have occurred at a specific time. It works like a historical record that validates the chronological order of transactions in a decentralized manner. Thus, improving the scalability and efficiency of a blockchain.
Proof of Space (PoSpace)
Also referred to as Proof of Capacity, Proof of Space takes advantage of available disk space to achieve consensus. This new consensus mechanism is an evolution of PoW but instead of using energy-intensive computations, it leverages unused hard drive space. Hence, making it more eco-friendly compared to PoW.
We also have other emerging consensus mechanisms that seek to boost the efficiency, scalability, and security of blockchains. Some of these mechanisms include the Proof of Burn (PoB), Proof of Authority (PoA), and Proof of Elapsed Time (PoET).