Why PoC+ is great
Discover why Proof Of Commitment (PoC+) is the smartest solution for a sustainable blockchain.
If you do not add the commitment factor and rely only on hardware, then you have extreme centralization and unfair competition.
This has been shown many times, you cannot compete with hardware only with giant farms. They pay way less for hardware and they pay way less than you for electricity. With the committed coins factor you have something that you can compete at the same level (price is the same for everyone). The entry barrier is very low. Small miners can boost their mining power with relatively small money. PoC+ is a greener option since effective capacity can be increased without purchasing more equipment.
Let's take a look at Bitcoin's Proof of Work consensus protocol, it requires expensive, specialized, energy-hungry hardware. This results in the amount of 121 TWh of energy consumption per year and more than 9 kilotons of e-waste.
Signum avoids e-waste and in comparison, requires less than 0.002% of that energy to drive the Blockchain.
Being ASIC Proof means that every day people can mine for the network and be just as efficient as the people who buy fancy, expensive equipment trying to gain an edge over each other.
In general, Proof of Stake gives participants with the biggest stake the most validation power. This means that people with a lot of stake, i.e. lot of money injected, become more important block validators. The richest gets richer. Therefore, the entry barrier for such a consensus mechanism is usually very high and gets higher and higher over the time. This leads to a agglomeration of validation power, meaning that over the time the network gets controlled by less and less, but each time more powerful validators.
Once you are a rich validator, you will be a rich validator forever. Initial whales of any PoS project will get richer and richer, which will just give them even more power over the network.
Proof of Stake Relies on Miner’s Keys Remaining Secret Two issues with miner’s keys potentially being compromised:
1)In order to mine a miner must store his private key on a computer mining for the network connected to the internet. This directly contradicts the idea of best practice security for cryptocurrency in general where holders should hold on to their keys offline and in a secure location. 2)History key attacks are possible where miners sell their private keys long after they have emptied their accounts and the key is otherwise useless. Proof of Stake supporters have argued that this is not a problem because of decentralized checkpoints not allowing the blockchain to be rolled back far enough for this to occur. The attack vector that this miss is that such an attack could happen using forks off of blocks over a year which ends up with millions fake forks building off of various blocks, and how can a new miner just joining the network for the first time possibly know in a trustless manner which fork is correct?
In contrast, Proof of Commitment favors smaller validators aka miners. PoC+ requires at least some basic hardware in form of hard drive - only staking is not sufficient. In most parts of the world it's pretty cheap to acquire a few Terabyte of conventional disk space.
The initial monetary and technical requirements for PoC+ are very low, i.e. the entry barrier is very low. Due to the hybrid model of hardware and staking aka commitment, especially small miners can boost their mining power with relatively small money. The less capacity a miner has the cheaper it is to gain bigger boost factors, while big miners would need to stake/commit significantly more to keep up the boost factors. This mechanism is a countermeasure to keep the network decentralized.
Most PoS projects usually comes with a large pre-mine. Otherwise how can you stake if there are no coins circulating yet? so there is no fair launch.
Signum (Previously Burstcoin) has been running since August 2014 with a fair launch:
- No ICO 🚫
- No Airdrops 🚫
- No Premine 🚫
Signa can be mined with PCs or tiny computers like a Raspberry Pi. The only thing needed is disk space to create what are known as plot files. With its PoC+ algorithm, Signum opens up the possibility for everyone to participate in the mining process without any major obstacles.
Proof of Work
Proof of Commitment
Proof of Stake
Proof of Capacity