Definition ∞ A Proof of Capacity mechanism is a consensus algorithm that allows participants to validate transactions and create new blocks by allocating hard drive space. Instead of computational power, as in Proof of Work, or staked capital, as in Proof of Stake, this method uses storage space as a resource for mining. Miners pre-compute solutions and store them on their hard drives, then present the correct solution when a block is found. It aims to be more energy-efficient than Proof of Work.
Context ∞ News about alternative consensus mechanisms often includes discussions of Proof of Capacity, highlighting its environmental advantages over traditional Proof of Work systems. Debates exist regarding its security against certain attack vectors and its potential for centralization if large storage farms emerge. Its adoption remains a point of interest for networks seeking greener validation methods.
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