bitdeal helps you in developing the POC blockchain development services for any kind of industries like medical, investment, telecom, networking, insurance, banking, SCM and etc
Posted December 12,2018 in Science and Technology.
The above conceptsPOC, POW and POSare coinsidered as algorithms in blockchain industry, each having a significant different with other. We know that the use of blockchain came to the spot light, only after the success of cryptocurrencies like bitcoin and ethereum. Because most of the cryptocurrenices have underlies this public and distributed ledger technology. In General cryptocurrenices like bitcoin are having a decentralized character, that is no- third party can have authority over it. Industry experts found that the only technology that can carry out the decentralization nature of these cryptocurrencies is blockchain technology.
So wherever the blockchain carry out its use cases it have to fulfil the decentralization nature of its own. Hence industry leaders derived Such proof based algorithms to split up the decentralized and distributed nature of blockchain technology to everyone.
In the above list POW (Proof of work ) , POS ( Proof of work )and POI are explores their full potential in Blockchain Mining Alone.
But The Proof Of Concept ( POC) is something unique which have started to rage in blockchian application development alone.
So lets see everything in short detail
1.Proof Of Work (POW)
This concept was firstly used by sathosi nakamato - the inventor of bitcoin. The release of bitcoin white paper denoted that The only way to over come the 51% attack is Proof - of work concept
51% attacks is nothing but whenever a single entity control over
the 50% of the entire network hash rate, then it will be considered as 51% attack.
Check outWhat is 51% Attack ?
Proof of work will prevent this attack by distributing the hash rate, and mining power through out the network. This idea was published by Cynthia Dwork on1993, but was named asProof of workby Markus jacobson in1999.
How POW Works?
It is solely used for mining process. In Mining Process you have to solve the complex mathematical puzzles in order to search a particular crypto coin. For the miner this process will be very difficult but for the network it will be easy to check it.
And more over I just want to convey one thing, we all are thinking that mining is solving problems, but what mining actually is validating a particular block . Mining is used to check out the legitimacy of a particular appended block in the chain.
In this entire Proof of work, concept miners have to set up a large mining rigs, and have to spend a lot of electricity to validate a single or particular block.
Disadvantages in POW
During the mining process miners have to generate a lot of assumptions in order to clear the puzzle.
Example : You have given with a key, and there are around 12 locks, so in order to open the exact lock you have the maximum probability of 11:1, So here you have to execute atmost 11 assumptions. This is what work in POW too.
* So random assumptions will waste the energy of miner and the electricity consumption
Here one bitcoin transaction required to utilize the electricity consumption of 1.57 american house holds per day. ( Average size of home is ~2700 sqft)
A recent report says, that the bitcoin transactions would consume the elecritcity as whole used by the entire denmark city by 2020.
POW Allows anyone to take part in mining. So this cause the entire network to delve in the new crypto currencies, and may cause the crypto currenceis value to depreciate
2. Proof of Stake (POS)
This will replace the Important of POW, By overcoming its major disadvantages.
Yes, The goal of POW and POS Are same, but how they execute the validation process alone differentiates each other.
In POW, The person who solves the mathematical complex algorithms first will have the access to validate the block, and will be rewarded with points. But in POS, The person who have the highest stake holds will have the access to validate a block, and will be rewarded with transaction fees
POW- it is just like a competition, So the miners have to compete with each other in order to validate a block, So the winner alone have access to validate the block.
POS- There will be a random selection algorithm will be execute, in order to choose the validator.
This will be done through a deterministic way, by considering the wealth (stake) of the validator.
The chosen validatore will be provided with higher hash rate and will have access to validate a block
How POS Works?
It focus on the property or stake(cryptocurrencies) of the user, irrespective of the solution to a challenge that POW Executes
As we said above the validator will chosen upon a deterministic way, which follows as below
Advantage of POS :
Disadvantage Of POS:
Since the validating authority, power up only one entity it completely contradicts the decentralized concept of blockchain.
There may be a chance of single entity to create a fork on the blockchain, So to eliminate this, Casper protocol was invented.Check it out here
So far we have discussed POS, and Pow. Both are exposed the use cases in validating a block alone, but POC is something different
Proof of conceptis a prototype that declares and demonstrate the possible solution to develop a blockchain application for any industry. This define thefeasibility, possibilities, and the goals that could be achieved through the blockchain project. This prototype may dont have any code, and will be executed initially withMVP (Minimum viable product)which will have the potential basic features that the blockchain project could cover.
After implementing the project to live, feedback of the MVP from initial customers will be received, and will be enhanced in order to complete the goals of the blockchain project.
This blockchain development will have 3 stages in its lifecycle
This covers the theoretical explanation of the blockchain projects through a set of proposals
Sketching the therotical explanations in to the prototype, which may consist of markups, sample archietecture, design layout, and ends in developing the MVP Product
3.MVP Product development
Based on the things discussed in the scope declaration, A fully developed MVP will be issued to the community and based on the feedback, the changes will resemble in actual deliverables.
Originally Published on : POC BLOCKCHAIN DEVELOPMENT