Cryptocurrencies since their inception have been the talk of the town. The new technologies that it has brought to the financial world are seen and acknowledged by the people, governments, and big businesses. The famous blockchain technology has been the most discussed and is implemented by the people for their different works.
The two cryptocurrencies that are, Bitcoin and Ethereum have brought two of the most talked-about features one is the consensus mechanism based on blockchain technology and the other is smart contract features that are being implemented by the different platforms with passing time to keep up with the technological advancements.
Cryptocurrency with each passing day has brought new innovations into the digital money-making world. Its features are not just limited to cryptocurrency workings but also the other fields of life. Blockchain technology is one such mechanism that has been most acknowledged by the people, governments, and businesses to enhance their capabilities.
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Although there have been scalability issues with these two currencies because they use the proof of work mechanism to mine and create new coins for the market.
Therefore, the developers are striving to achieve more in this field by bringing more technological advancements so that issues relating to scalability are solved. All these advancements are kept intact with the features that they strive to hold along with these new workings in this space.
HOW PROOF OF HISTORY WORKS
Proof of history provides proof that gives detail about the historical events. As any historical event gives information regarding a particular thing, so does proof of history. It gives all the information about when a transaction occurred. In other blockchains, validators do a consensus as to when time passed but in the case of proof of history, the validators have their own clock where they encode the time passage through hashing. It has been an innovative step towards attaining capacity and speed while dealing in transactions.
Proof of history enables the time taken in a transaction through cryptographic means. By this method, we can see SOLANA, which launched this innovative mechanism, has around the capacity of processing 65000 transactions per second. All this was possible through this new mechanism where a party has not to compromise on the security and other known features.
In proof of history, validators through the ledger get to know the position of the network for computing purposes and as per the received validation messages on the ledger, a validator either decides a node to be valid or invalid.
TALKING ABOUT BLOCK TIME IN POH
The block time that a transaction is taking is much less and convenient as compared to the other two mechanisms called proof of history and proof of stake. Proof of history has been used in Solana which is also called the real “Ethereum Killer” because of how fast it is. Not just this but it is so inexpensive when it comes to charging fees per transaction.
All these factors have been possible because of proof of history that is leading cryptocurrencies to altogether new heights. If we compare the block time of other currencies that uses the other two mechanisms and the one that uses proof of history, we would come to know that proof of history’s block time until now has been unbeatable.
The topic written above gives a piece of short information about the new mechanism that has come into the crypto world and has given some good results. This mechanism is called proof of history.