What is the proof of Contribution (PoCo) algorithm?

What is the proof of Contribution algorithm? Knowing the consensus algorithm (PoCo) can be very useful in increasing the theoretical knowledge of people involved in the digital currency market. In this article, we will examine this issue from Pooyan Music Website.

What is the proof of Contribution algorithm?

Proof of Contribution is a consensus algorithm designed for blockchain networks. This algorithm is designed and launched based on the Contribution of users present in the blockchain network. According to this algorithm, both user Contribution and hash rate calculation are needed to make the necessary decision to confirm the eligibility of users to participate in the competitive mechanism of the network.

In the PoCo algorithm, all active nodes in the blockchain network are examined with specific components. Next, the nodes that have the most Contribution in the network will be allowed to create a new block in the blockchain.

How is user Contribution in the blockchain network?

User Contribution in the blockchain network can include the following:

Send and receive transactions

Data storage

Perform calculations

In the PoCo algorithm, a minimum level of trust is determined so that the user can earn Contribution points by achieving it. All users who intend to work with the PoCo algorithm in the blockchain must first create a security deposit. Next, the amount of Contribution of each user is measured according to his activity records and the size of his security deposit.

In each period when consensus takes place in the blockchain, the results that are considered for calculations are presented by a number of users with the necessary qualifications. Finally, the user who has the minimum trust required for calculations has the authority to suggest the result.

Mechanism of proof of Contribution algorithm

The mechanism of the proof-of-Contribution algorithm is that the blockchain transaction fee is divided among the nodes or users who have calculated the correct result. In addition, the security deposit of users who have performed invalid calculations is provided to the nodes.

According to the PoCo algorithm, every time a new block is created, the validity of all users (whether successful or failed) is checked again from the beginning according to their activity history.

What platforms from the proof of Contribution algorithm

The level of use and application of the proof-of-Contribution algorithm is not widespread and among active platforms, iExec and ICON Network use this algorithm and are among the pioneers of modern blockchain technology. Of course, what exists in the ICON Network platform environment is a modified level of PoCo known as Delegated Proof of Contribution (DPoC).

Advantages of the Proof of Contribution Algorithm

Proof of Contribution algorithm has the following advantages:

• Decentralization
• security
• Performance
• Expandability
• Disadvantages of the Proof of Contribution Algorithm
• Proof of Contribution algorithm has the following disadvantages:
• Complexity
• Costly

Consensus mechanism steps

Consensus mechanism is a process used to reach an agreement in a decentralized network. This process generally includes the following steps:

• Identification of users or network nodes
• Determining the Contribution criteria of users or nodes
• Apply Contribution criteria to identify valid users or nodes
• Selecting a valid user or node to perform a specific task

Types of consensus mechanism

There are different consensus mechanisms for decentralized networks, each of which has its own advantages and disadvantages. Some of the most common consensus mechanisms are:

Proof of Work (PoW)

In this mechanism, users or nodes with the most processing power are selected to create new blocks in the network.

Proof of Stake (PoS)

In this mechanism, users or nodes who have more digital currency of the network are selected to create new blocks in the network.

Proof of Credit (PoA)

In this mechanism, users or nodes with more credibility are selected to create new blocks in the network.

Proof of Contribution (PoCo)

In this mechanism, users or nodes who have contributed more to the network are selected to create new blocks in the network.

Conclusion

In summary, the Proof of Stake algorithm is an innovative consensus algorithm that has many advantages over traditional consensus algorithms such as Proof of Work (PoW) and Proof of Stake (PoS). However, this algorithm is still in the early stages of development and its application has not been tested on a wide scale.