Proof of Capacity

Proof of Capacity (PoC) consensus

Proof of Capacity consensus adds an innovative twist. Unlike traditional methods relying on computational power or stakes, PoC leverages storage space as the determining factor for block creation and validation. Miners, or ‘plotters’ in this context, allocate storage capacity to showcase their commitment to the network. When a block needs validation, the miner with the most available storage, proven through cryptographic proofs, takes the lead. PoC offers an energy-efficient alternative, aligning well with sustainability goals, making it a noteworthy player in the diverse landscape of consensus mechanisms.

Proof of Capacity & plotting

Proof of Capacity (PoC) introduced the concept of “plotting,” where miners precompute and store large sets of cryptographic data on their hard drives. This process is known as plotting. Plotting involves generating and storing a set of hashes called “plots” in advance, which are then used during the mining process. When a new block is to be validated, the system checks these stored plots to quickly determine the winner, significantly reducing the computational load compared to Proof of Work.

In addition, PoC enhances security by diversifying the types of resources required for mining, making it more difficult for a single entity to monopolize the network through specialized hardware or substantial financial investment. This unique approach not only contributes to lower energy consumption but also promotes the use of underutilized storage resources.