Proof of Participation is one of many consensus algorithms. The algorithms ensure that the blockchain remains secure and the nodes that validate blocks are rewarded. But if we compare Proof of Participation with other consensus algorithms, we see many differences.
Are you curious about what Proof of Partication is? In this article we provide all the explanation you need and tell you the difference with other consensus algorithms such as Proof of Work.
View quickly
- View quickly
- Consensus algorithms
- What is Proof of Participation?
- Reward
- Why was Proof of Partication invented?
- Why would Proof of Work no longer work?
- Participation is too expensive
- Safety
- Bad for the Environment
- Proof of Stake vs. Proof of Participation
Consensus algorithms
Every blockchain has a consensus algorithm. The consensus algorithm ensures that the protocols and rules of the blockchain are followed by everyone.
In addition, it also ensures that all transactions in the blockchain are reliable. It also secures the blockchain against double-spend attacks and censorship. In fact, the consensus algorithm is very important for the security and decentralization of the blockchain.
To add a block to the blockchain, it must first be validated. Miners do this by solving a mathematical puzzle. When a miner has found the correct solution, all other nodes in the blockchain check whether the solution is correct and that no strange things have happened. When the majority of miners approve the solution, the block is added to the blockchain and the ‘winner’ receives a reward.
There are many different types of consensus algorithms:
- Proof of Work
- Proof of Stake
- proof authority
- Delegated Proof of Stake
- Proof of Capacity
- Proof of Reputation
- Proof of Participation
What is Proof of Participation?
The least known consensus algorithm is probably Proof of Participation. This is because it is not used by almost any blockchain yet. So it is a fairly new consensus algorithm.
Proof of Participation is an algorithm that chooses which node’s turn it is to validate a block, and rewards participants based on their input.
Each time, the algorithm randomly selects a node whose turn it is to validate a block. The algorithm does this based on the participation score. This score says something about how much they contribute to the blockchain. The higher the score, the higher the node’s chance of getting a reward.
The moment a node reaches a score of zero, it is removed from the blockchain. After this, the node can no longer participate in the blockchain. This really only happens when a node does something against the rules.
Reward
Participation is measured using a ticket system. When a node adds a block that is validated, this node gets a ticket. Each ticket contains a certain value, based on the quality of the transactions that the node has performed in the past. The better the quality and speed of the validation, the higher the value of the ticket.
When the node creates a block, it adds these tickets. The other nodes then calculate the actual value of the tickets, and the node’s score goes up or down based on the quality of the tickets.
A node with a high score has a higher chance of being selected to validate a block. As a result, a node that participates well in the blockchain can receive more rewards than a node that does not participate well.
Why was Proof of Partication invented?
Proof of Partication was invented by Blockchain Zoo. This is a company based in Asia that is creating their own blockchain (ZooBC).
They started with Proof of Participation because they want a safer and stronger consensus algorithm than the existing algorithms. With Proof of Participation, nodes are rewarded based on how well they participate, and not based on how good their hardware is, as with Bitcoin’s Proof of Stake algorithm.
This way the algorithm is a lot more secure. Nodes that have little presence or try to manipulate the blockchain will get a low score. Eventually, they are automatically removed from the blockchain, keeping the blockchain secure. Other nodes will be happy about this, as it means they have a high chance of getting a reward.
It is not the case that someone who is removed from the network loses all his property, as with Proof of Stake. With Proof of Partication, things are a bit more fair. No matter which way you exit the network, you will always keep the same number of rewards.
Every node is behind the same rules that are set up for this algorithm. They all know how someone’s work is judged. If someone does not participate well, it will only work against the network. Therefore, the other nodes remove it from the network.
There is no one who has more to say than the rest. The rules that have been set up are stored in a decentralized manner and all nodes agree with the rules. In this way, the blockchain remains truly decentralized.
It is also not possible to start a mining pool in this way. Each node works independently within the blockchain. A 51% attack is therefore completely excluded.
Why would Proof of Work no longer work?
The best-known consensus algorithm is Proof of Work, as it is used by Bitcoin. This algorithm no longer works, according to Blockchain Zoo, for various reasons.
Participation is too expensive
When someone wants to join the Bitcoin blockchain, it is almost impossible to validate a block. There are now large mining pools that work together to validate blocks. They bundle the power of their hardware together in order to validate the blocks as quickly as possible. It is therefore impossible to intervene here as a unilateral node, unless you buy a large mining farm. The costs of this can easily run into the tens of thousands of euros. So not exactly cheap.
Safety
These mining pools can also pose a threat to the security of Bitcoin. When a mining pool consists of more than 50% of all nodes, they can take over the network. They then have the option to rewrite the blockchain’s history, or add rogue transactions to blocks and validate them accordingly.
As soon as the value of the rogue transaction that hackers want to perform exceeds the costs of setting up a mining farm, it is therefore very attractive for hackers to do everything they can to control the majority of the network. to have.
So they can execute certain transactions that have not actually been executed. This can lead to crypto coins being stolen.
Bad for the Environment
Proof of Work is actually not that good for the environment at all. Because so many computers and servers are needed to participate in the Proof of Work algorithm, it also takes a lot of energy to keep it running. Bitcoin’s blockchain consists of a lot of mining farms. These are large server rooms that are only engaged in Bitcoin mining.
A contrast to this is Proof of Partication. Here it does not matter how much computing power a node has. A node that only runs on a simple computer, but always actively participates, can receive a higher reward than a node with a lot of computer power.
Proof of Stake vs. Proof of Participation
Shortly after Proof of Work was conceived, Proof of Stake was also launched. There is actually only a small difference between these two algorithms. With Proof of Work, the blocks and transactions are controlled by the miners (external), while with Proof of Stake, this is controlled by the balance of the coin (internal).
It seems that this makes Proof of Stake a secure blockchain, but that is not entirely the case. When someone occupies more than 51% of the crypto coins, he can take over the entire network. This means that he can check and validate malicious blocks and transactions.
Proof of Partication would require someone to own much more than 51% of the network. And we are talking about nodes, while at Proof of Stake someone has to own 51% of the coins. Proof of Partication is therefore a lot safer in this area.
Proof of Partication is also a bit fairer than Proof of Stake. In the former algorithm, nodes are randomly chosen to validate a block, based on their participation score. The better they participate, the higher the score and the higher the chance that they will be chosen. With Proof of Stake, the chance that you can mine a block is based on the amount of ‘stake’ you bet.
So whoever has the most gets the most.
Finally, only the person who has validated a block will receive a reward in a Proof of Stake network. With Proof of Participation, everyone gets a reward. Even if a node has not validated anything, but does participate well in the network, it will receive a reward. This reward is of course not as great as if it validated a node, but this way new nodes can also build up their score.
