This blockchain innovation was introduced by Solana. Through Proof of History, low transaction costs and energy efficiency can be achieved. Check out the complete explanation about PoH in this article.
What is Proof-of-History (PoH)
Proof of History (PoH) is an innovative concept introduced by Solana to integrate time into the blockchain structure, thereby reducing the load on network nodes during block processing. \
In contrast to traditional blockchains, where reaching consensus on block mining times is important, PoH simplifies this process by incorporating a verifiable delay function (VDF) to generate timestamps.
How Proof of History Works
Verifiable Delay Function (VDF)
At the heart of PoH is VDF, a mathematical function that takes a long time to calculate, but the results can be verified quickly. VDF ensures predictable time intervals for each step, increasing block validation efficiency.
Sequential Mining
In contrast to competitive Proof of Work (PoW), PoH uses sequential mining where nodes compete to complete the VDF first. The first miner to complete the VDF generates a timestamp and a new block.
BFT Tower Validation
Solana combines PoH with Tower Byzantine Fault Tolerance (Tower BFT) for block validation. Nodes that wish to validate blocks must stake their SOL tokens. If they validate a fake block, they will lose their tokens.
Advantages of Proof of History
- Low Transaction Fees: Solana offers economical transaction fees compared to other networks, making it ideal for frequent transactions and money transfers.
- Scalability: With fast transaction processing, Solana exhibits incredible scalability, meeting the needs of a growing network.
- Energy Efficient: PoH is much more energy efficient than PoW, making it a more environmentally friendly choice.
Disadvantages of Proof of History
-
Limited Multiplier: Currently, Solana relies on less than 2,000 validators for transaction validation, which could potentially impact decentralization.
- DApp Adoption: Although considered a competitor to Ethereum, Solana has fewer decentralized applications (dApps) than Ethereum, which may affect the growth of its ecosystem.
Proof of History vs. Proof of Stake
Although PoH and Proof of Stake (PoS) have similarities, especially in the use of validators, they differ significantly in their time calculation methods. PoS relies on network timestamps, which can slow down network operations.
In contrast, PoH uses VDF to calculate time based on historical events, ensuring faster processing and scalability.
Potential Challenges
- Security: PoH security has not been fully tested on a large scale. Vulnerabilities in Solana, caused in part by PoH, raise concerns about the reliability and security of the mechanism.
- Decentralization: The centralized multiplier in Solana can impact the decentralization of the network.
Conclusion
Proof of History is an innovative solution for achieving consensus in blockchain. Despite some drawbacks, PoH offers scalability, low transaction costs, and better energy efficiency compared to traditional consensus methods. As the blockchain ecosystem evolves, PoH may become the dominant consensus mechanism for future blockchains.
Also read:
What is Byzantine Fault Tolerance (BFT)? Understand more fully here
What Is A Supercycle In Crypto?
What is Metamask Snap and How to Use It
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates
Comments
0 comments
Please sign in to leave a comment.