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In this article, we are going to say something about the proof of participation algorithm. Knowing the consensus algorithm (PoCo) can be very useful in increasing the theoretical knowledge of people involved in the digital currency market.
Proof of Contribution is a consensus algorithm designed for blockchain networks. This algorithm is designed and launched based on the participation of users present in the blockchain network. According to this algorithm, both user participation 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 participation in the network will be allowed to create a new block in the blockchain.
User participation in the blockchain network can include the following:
1. Sending and receiving transactions
2. Data storage
3. Making calculations
In the PoCo algorithm, a minimum level of trust is determined so that the user can earn participation points by achieving it. All users who intend to work with the PoCo algorithm in the blockchain must first create a security deposit. In the following, the participation rate 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.
The mechanism of the proof-of-participation 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 participation algorithm
The level of use and application of the proof-of-participation algorithm is not widespread and among the active platforms, iExec and ICON Network use this algorithm and are considered 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).
Proof of participation algorithm has the following advantages:
1. Decentralization
2. Security
3. Efficiency
4. Expandability
Proof of participation algorithm has the following disadvantages:
1. Complexity
2. Being costly
Consensus mechanism is a process used to reach an agreement in a decentralized network. This process generally includes the following steps:
1. Identification of users or network nodes
2. Determining the participation criteria of users or nodes
3. Apply participation criteria to identify valid users or nodes
4. Selecting a valid user or node to perform a specific task
There are various consensus mechanisms for decentralized networks, each of which has its own advantages and disadvantages. Some of the most common consensus mechanisms are:
1. Proof of Work (PoW): In this mechanism, users or nodes with the most processing power are selected to create new blocks in the network.
2. Proof of Stake (PoS): In this mechanism, users or nodes who have a greater amount of digital currency of the network are selected to create new blocks in the network.
3. Proof of Authenticity (PoA): In this mechanism, users or nodes with more credibility are selected to create new blocks in the network.
4. Proof of participation (PoCo): In this mechanism, users or nodes that have participated more in the network are selected to create new blocks in the network.
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.
