Proof-of-Strategy (PoSg) x Proof-of-Work (PoW): Which is more useful?
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Proof of work (PoW) is a form of cryptographic proof in which one party (the prover) proves to others (the verifiers) that a certain amount of a specific computational effort has been expended.
- Wikipedia
What’s the problem with Proof-of-Work?
Bitcoin didn’t invent the term Proof-of-Work, but it was responsible for popularizing it. Proof-of-Work is the foundational stone of multiple blockchains’ consensus protocols. But there is one problem: PoW does not scale well.
The crypto community has long been aware that as more miners join the network, the harder it is to mine and the higher the energy expenditure. As temperatures keep rising, the concern with the scalability of PoW-based networks and their impacts on climate follows. One of the main issues raised by the community is that Proof-of-Work wastes energy. The argument is that it uses a lot of computation power, therefore energy, to verify, on average, only seven transactions per second.
Accordingly to the University of Cambridge’s Bitcoin Electricity Consumption Index, the electricity consumed by the Bitcoin network is more significant than the consumption of countries such as Belgium and Finland currently.
Proof-of-Strategy to the rescue
ChainsAtlas is a multi-chain interoperability network that uses a novel, useful class of Proof-of-Work called Proof-of-Strategy (PoSg). PoSG is useful because the node’s computational power expenditure aims to determine a time and cost-effective execution strategy for a smart contract across various blockchains. Consequently, the energy expenditure of PoSG can minimize the overall energy expenditure across blockchains and optimize smart contract execution given the set of constraints defined by the client.
The Strategist (node that provides the optimized execution strategy in PoSG) essentially contributes to an optimal transaction efficiency equilibrium across blockchains with a smart contract feature. Time and cost-effective blockchains have their transaction volume increase as a reward. In contrast, slow and expensive ones have their transaction volume reduced as punishment.
Instead of being another consensus protocol with expensive infrastructure and redundant features, Proof-of-Strategy capitalizes on other blockchains’ strengths to empower the community and foster a sustainable ecosystem. There is no need for more wasted energy in exchange for expensive gas fees and slow transactions.
If you have read this article until now, be sure to register for the Athena airdrop and become one of the first Strategists of the network to help make Web3 the new paradigm for software applications!
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