Consensus Algorithm
A consensus algorithm is a procedure to agree on agreement on a single data value among distributed systems. The consensus algorithm is a very important part of the system as it maintains the system security and integrity.
We will discuss two consensus algorithms and their use cases.
Proof of Burn (PoB):
Proof of Burn is the process of burning coins which means the coins will send to a dead address where these are unreachable and cannot retrieve back. The more coins they burn, the better are their chances of being selected to mine the next block.
Use Case:
The miners will get more power by burning more coins.
Pros
· No more power consumption.
· Hardware mining is not used.
· Reduce circulating supply.
· Less centralized.
Cons
· Bitcoin needs lots of resources.
· More testing is required to confirm its efficiency and security.
· Not as fast as POW blockchains.
· Not transparent always.
Proof of Capacity:
In the Proof of Capacity consensus, validators should invest their hard drive free space instead of investing in costly hardware or burning coins. The validators use their free space for mining and earning the rewards.
Use Case:
Use free space on their hard drive to mine the available cryptocurrencies.
Pros
· It can use any daily use hard drives.
· It uses more efficient energy.
· Hard drives can be reused after mining.
Cons
· Not many developers have adopted the system.
· Chances of affected by malware.
