Proof of Capacity is a consensus mechanism used in some cryptocurrencies where miners use their available hard drive space to decide mining rights and validate transactions. Instead of using computational power, the system relies on how much storage space a participant has dedicated to the network. This approach aims to be more energy-efficient than traditional…
Proof of Importance is a consensus mechanism used in some blockchain networks to decide who gets to add the next block of transactions. Unlike Proof of Work or Proof of Stake, it considers how active a participant is in the network, not just how much cryptocurrency they own or how much computing power they have….
Nominated Proof of Stake, or NPoS, is a method used by some blockchain networks to choose who can create new blocks and verify transactions. In this system, token holders can either become validators themselves or nominate others they trust to act as validators. The more nominations a validator receives, the higher their chance of being…
Delegated Proof of Stake, or DPoS, is a consensus mechanism used by some blockchain networks to validate transactions and secure the network. Instead of every participant competing to validate transactions, users vote for a small group of trusted representatives called delegates. These delegates are responsible for confirming transactions and adding new blocks to the chain….
Proof of Elapsed Time, often shortened to PoET, is a consensus mechanism used in blockchain networks to decide who gets to add the next block of transactions. It relies on trusted computing environments to randomly assign wait times to participants. The participant whose wait time finishes first gets to create the next block, which helps…
Hybrid consensus models combine two or more methods for reaching agreement in a blockchain or distributed system. By using elements from different consensus mechanisms, such as Proof of Work and Proof of Stake, these models aim to balance security, speed, and energy efficiency. This approach helps address the limitations that each consensus method might have…
Validium scaling is a method used to increase the number of transactions a blockchain can handle by processing data off the main chain. It keeps transaction data outside the blockchain while using cryptographic proofs to confirm transactions are valid. This approach helps to lower costs and make transactions faster, without overloading the main network.
Rollup compression is a technique used in blockchain systems to reduce the size of transaction data before it is sent to the main blockchain. By compressing the information, rollups can fit more transactions into a single batch, lowering costs and improving efficiency. This method helps blockchains handle more users and transactions without slowing down or…
Payment channels are a technology that allows two parties to conduct multiple transactions between each other without recording every transaction on a public blockchain. Instead, only the opening and closing balances are recorded, which helps reduce fees and increase transaction speed. This method is commonly used to make frequent or small payments more efficient.
State channel networks are systems that allow parties to conduct many transactions off the main blockchain, only settling the final outcome on-chain. This approach reduces congestion and transaction fees, making frequent exchanges faster and cheaper. State channels are most often used for payments or games, where participants can interact privately and only broadcast a summary…