Proof-of-Balance is a hypothetical or experimental consensus mechanism where the right to validate transactions or propose new blocks is weighted by a participant’s current asset holdings. Unlike Proof-of-Stake, which often involves locking assets, Proof-of-Balance might simply verify the quantity of assets held at a given moment. This approach seeks to secure a network based on the economic stake of its participants.
Context
While not a widely adopted consensus mechanism, Proof-of-Balance concepts might appear in academic research or early-stage protocol discussions concerning novel ways to secure decentralized networks. News reports could mention it in the context of exploring alternatives to Proof-of-Work or Proof-of-Stake, particularly for niche applications where a simple balance verification offers sufficient security. Its practical application remains limited compared to established methods.
Proof-of-Balance, a biomimetic asymmetric Sybil-resistance mechanism, fundamentally redesigns consensus to achieve a four-order-of-magnitude security increase.
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