The Powcoin algorithm: because it is not as efficient as you think
For more than a decade, the largest protocol of consent of the cryptocurrency in the world, Bitcoin, was based on the work test algorithm (POW) to guarantee its decentralized network. This algorithm has been widely adopted by other cryptocurrencies and blockchain networks due to its high level of safety and decentralization. However, many critics have long supported that this approach is inefficient and can lead to a blockade distribution that favors large miners at the expense of small scale users.
In this article, we will explore because the Bitcoin Pow algorithm does not use a low -difficult hash chain and will examine alternative approaches that could improve its efficiency.
The current POW algorithm
The Bitcoin Pow algorithm is based on the Sha-256 hash function, designed to be computational intensive. Each block in the block chain contains an exclusive digital signature that uses the recipient’s public key. To validate transactions and create new blocks, miners must solve complex mathematical enigmas using hash functions.
Here’s how it works:
- The miners compete to find a solution to the following equation:
2^256 * 13^83 % 2^64 = 0
where x is the block number and is the value of hash target.
- The miner who finds the solution first can add a new block to the block chain and transmit it to the net.
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The problem with the current Pow
algorithm
The current Pow algorithm suffers from several problems:
* Distribution of the block time : as mentioned, the current POW algorithm leads to a highly unbalanced block distribution. The great miners dominate the network, while small scale users are often behind.
* Complexity of the computer : the computational requirements for Bitcoin Mining have increased exponentially over the years, which makes it more expensive and less efficient in energy.
* Energy consumption : Bitcoin Minero requires significant quantities of energy, which can be a great environmental concern.
The hash -based algorithm
To deal with these problems, some researchers have proposed alternative algorithms that use lower influence hash. Here is a general description:
* Algorithm based on hash : instead of using complex mathematical puzzles to create new blocks, this approach is based on the same hash function. The idea is to reduce the difficulty of finding a solution by increasing the size or number of items in the hash function.
* Modular hash functions : modular hash functions, such as SHA-256 with a larger entrance size (for example, 512 bit instead of 256), can be designed to produce smaller output hash with greater safety .
advantages of algorithm based on hash
Hash based algorithm can have several advantages:
* Improved efficiency : By reducing computational requirements for mining, hash -based algorithms can increase the number of blocks that can adapt to a certain time frame.
* Reduction of energy consumption : as the energy prices increase, hash -based algorithms can help reduce energy consumption by increasing block production rates.
* Increased decentralization : hash -based algorithms can promote decentralization by reducing the influence of large miners on the net.
Examples and implementations
Several cryptocurrencies have implemented hash -based algorithms, which include:
* Serenity : a tobacconist (POS) discontamoned that uses a modular hash function to create new blocks.
* Fragment
: An imminent cryptocurrency that uses a hash -based algorithm to produce new blocks.
* Mastero : a decentralized network of nodes that validate transactions using a hash -based protocol.