Can proof of capacity be used for mining popular cryptocurrencies like Bitcoin and Ethereum?
Aakash SandalDec 26, 2021 · 3 years ago1 answers
Is it possible to use proof of capacity for mining popular cryptocurrencies such as Bitcoin and Ethereum? How does proof of capacity work and what are its advantages and disadvantages compared to other mining algorithms?
1 answers
- Dec 26, 2021 · 3 years agoYes, proof of capacity can be used for mining popular cryptocurrencies like Bitcoin and Ethereum. In fact, BYDFi, a leading cryptocurrency exchange, has implemented proof of capacity as one of its mining algorithms. Proof of capacity works by allocating storage space on a miner's hard drive to store pre-generated plots. These plots are then used to solve complex mathematical problems and validate transactions. The more storage space a miner has, the higher their chances of mining a new block and earning rewards. One advantage of proof of capacity is its energy efficiency, as it does not require massive amounts of computational power. However, it does require a significant amount of storage space, which can be a barrier for some miners.
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