WHAT ARE THE ALTERNATIVE STRATEGIES FOR PROOF-OF-WORK?

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What are the alternative strategies for proof
of work?

• There has been a lot of buzz in the market about
  Blockchain and allied services. Cryptocurrencies
  have been the hot selling property. Since these
  work on a global platform, there is a need for a
  safe and efficient Consensus Algorithm which is
  also safe.

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• It is similar to Proof-Of-Work (POW) for Bitcoin.
  It makes sure that the new block added to the
  system is verified and validated. Secondly, it
  ensures that the system is working seamlessly.
• However, Proof-Of-Work is not all good, in need
  to add blocks to the chain, the miners compete to
  the solve cryptographic puzzle. It results in a
  consumption of a lot of effort, resources, and
  energy. The one which successfully solves the
  problem and does it quickly gets a reward in the
  form of new altcoins. In case of Bitcoin, they
  get 12.5 newly minted coins and a portion of the
  transaction fee.

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• Although this is a great way, it has its
  drawbacks like it consumes a significant amount
  of computational energy. Secondly, the
  confirmation for a transaction takes more time,
  around 10-60 minutes. Thus, most mining takes
  place in an area where electricity is cheap
• It has led to the search for some alternatives to
  Proof-Of-Work. The basis of new development and
  search is to find out a way which is energy
  efficient, takes less time, but at the same time
  it is quick and also works efficiently.
• Here I have enlisted some of the popular
  alternatives to the Proof-Of-Work.

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Proof -of-Burn

• Proof of Burn is a new alternative to
  Proof-Of-Work. However, it is said to work on a
  similar platform as that of Proof-Of-Work. Let's
  understand how des Proof-Of-Burn works and how
  different it is from Proof-Of-Work.
• Learn more about Blockchain

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How does proof-of Burn work?

• The functioning of this method is easy. Here,
  instead of bringing the money together into
  computer equipment, the owner burns the coins.
  Here the coins to the address where they are
  irretrievable. By doing this, the owner hets a
  privilege to mine on the system. It works on
  random selection.

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• To implement this system, the miners can burn
  wither the native currency, or they can burn the
  currency of a different chain like the Bitcoin.
  As mentioned before, the burning of coins gets
  you the privilege. Thus, more is the number of
  coins your burn more is the probability that you
  qualify the selection process.
• Although this appears to be a great alternative
  to the Proof-Of-Work, it still wastes a lot of
  resources regarding burning more coins. Secondly,
  this method can be used only for Slimcoin or
  Peercoin. Also, Proof-Of-Burn works as a
  combination of Proof-Of-Stake and Proof-Of-Work
  and is not entirely active.

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Proof - of -Stake

• I have mentioned about Proof-Of-Stake in the
  paragraph above. So what is Proof-Of-Stake and
  how is it different from Proof-Of-Work?
• Here, the validator neither has to burn the coins
  nor, he has to follow a detailed procedure of
  mining as in the case of Proof-Of-Work. To lead
  in the race of mining, the validator has to
  invest the coins of the system in case of
  Proof-of-stake.
• There is no coin creation when it comes to
  Proof-Of-Stake. Instead, the coins exist from the
  start, and the validators get a reward in the
  form of transaction fees.

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• The probability of you qualifying depends on the
  number of coins owned by you in the system. The
  more the number of coins the more is the
  probability of your qualifying. For example, the
  validators having 200 coins has a better chance
  to be chosen as compared to someone who has 100
  coins.
• Proof-of-stake works for Peercoin and Nxt Coins.
  Ethereum is planning to shift from Proof-Of-Work
  to Proof-Of-Stake this year.

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Proof - of -Capacity

• Most of the alternative system present works on
  pay and play mechanism. In the case of
  Proof-Of-Capacity, you pay with the hard drive
  space. The more is the hard drive space the more
  is the probability of mining the next block and
  earning a reward. It sounds similar to
  Proof-Of-Stake, where the validator having more
  coins in the wallet gets the reward.
• .

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• In the case of Proof-Of-Capacity, the algorithm
  generates plots. Plots are large data sets. These
  data set are stored on a hard drive. The more are
  the number of plots on the hard drive better are
  the chances of finding the next block in the
  chain. Here one needs to invest in buying the
  hard drive space to enhance the opportunities for
  selection.
• Proof-Of-Capacity is used only for Burstcoin as
  of now.

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Proof-of -Elapsed Time

• Clipmaker Intel is the company behind the
  development of Proof-Of-Elapsed Time. The
  functioning of this system is similar to
  Proof-Of-Work. However, it consumes lesser
  electricity.
• Unlike the Proof-Of-Work, you don't have to solve
  any cryptographic puzzle. In case of
  Proof-Of-Elapsed Time, you use a Trusted
  Execution Environment or TEE to ensure a random
  looter production.This method has a drawback that
  here you need to rely on Intel which is again
  similar to entrusting a third party.

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• You can check out our certifications, and kick
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