Proof-of-Authentication
Last updated
Last updated
Proof-of-work describes a system that is not trivial but requires a fair amount of effort to deter DOS (denial of service) attacks and other malicious attacks. Creating new blocks on the blockchain requires solving a challenging computational puzzle.
The Proof-of-Stake mechanism achieves consensus by requiring users to stake a number of their tokens so that they have a chance to be selected to validate their transaction block and be rewarded for doing so. Priority is given to the miners who buy the most shares in the blockchain system.
This form of consensus reflects the selection of members in governing bodies. Rather than staking their assets themselves, stakeholders can delegate this activity to third parties, such as witnesses or delegates, who will be involved in the settlement process. Witnesses who approve transactions often submit a proposal, ask for votes, and are chosen by the stakeholders. Rewards earned by these entities are often shared with network participants.
Represented Share is the representation of a company's shares by another entity or entities, either physically or electronically. Representative entities are typically used to facilitate stock transactions, manage voting rights between shareholders, or provide other services to stockholders.
Represented Shares mean that shareholders receive documents indicating ownership of shares through the representative entities, rather than physically holding the shares themselves. As a result, shareholders do not own the shares directly, but can use the representative entities to vote on their behalf.
Represented Shares are commonly used in large corporations and institutional investors. These types of shares are typically represented by companies or financial institutions that specialize in stock storage and management. This makes it easier for shareholders to conduct transactions quickly and easily, and for companies to facilitate communication among shareholders.
This type of consensus mechanism is useful in decentralized file storage applications such as Storj.io, Filecoin, and Crust, where nodes prove to have legitimate capacity on their hardware. However, instead of using heavy computation as in the PoW mechanism, it takes advantage of the storage capacity of each node. It is also sometimes referred to as PoStorage or PoCapacity.
A better alternative to PoW, consuming lesser computational resources. Each participating node needs to wait for a random amount of time and the very first node to wake up from sleep gets a chance to create a new block, which is then propagated through the network. It requires Trusted Execution Environments ( TEE ) like Intel SGX, which are an isolated part of memory and can only be accessed using a certain set of instructions.
