Why Proof of Capacity is the Successor to Proof of Work
It has long become common knowledge in the blockchain space that Proof of Work, for all Satoshi’s revelatory insight, is flawed in a few very key ways. That’s not to discredit PoW and Bitcoin – they paved the way for a new era marked by decentralized blockchain technology. But it’s time to stop looking past the glaring issues with PoW.
CPU Mining is Inefficient and Wasteful
In 2019, Forbes reported that Bitcoin mining accounted for around 0.28% of global energy consumption – more than the entirety of small countries such as Switzerland. This is simply not sustainable if a blockchain is to become fully adopted around the world.
PoW Mining Is Centralized
Though PoW promises to be decentralized, the reality is that Bitcoin mining inevitably became dominated by only a few entities. These massive mining firms such as Antpool and F2Pool hold the lion’s share of CPU mining power, and as such fly in the face of Satoshi’s original vision of a decentralized cryptocurrency. Unfortunately there many be no turning back the tide against these mining giants – the solution is to look forward to new consensus algorithms.
High Barrier to Entry
Back in the early days of PoW, anyone with a spare computer lying around could dedicated their CPU to mining and contribute to the network, being rewarded with an appreciable amount of mining rewards. Those days are long gone. Lone miners simply have no hope of breaking into the market with consumer-level CPU power. Proof of Work migrates further and further from being a network that everyone around the world can be a part of.
Proof of Capacity as the Solution
Put simply, Proof of Capacity is very much akin to Proof of Work, but instead of CPUs burning away wasting energy to mine, plotting is done in advance which means hard drives simply need to be scanned for mining solutions – a process far less energy intensive that Proof of Work. Furthermore, hard drive capacity is exceedingly cheap, meaning that barrier to entry is significantly lower and even consumer devices such as phones, laptops and tablets can potentially be used for PoC mining – no need for dedicated hardware.
Cutting Edge PoC Projects
PoC has been around for years, but it hasn’t yet fully caught on due to the blockchain space’s fixation on salvaging PoW or unworkable systems such as Proof of Stake. Projects like Burstcoin and others blazed the trail but only skimmed the surface. The true potential of PoC will be realized by upcoming projects such as BXTB, which promises to be a Proof of Capacity blockchain solution, enabling both casinos and merchants on one hand, and players on the other, for a trustless, decentralized and truly randomized gaming experience – a “game-changer”, in other words. Keep a close eye on BXTB and other PoC projects, which may be in their infancy now – but so was Bitcoin back in 2009.