” It is a Techpay blockchain consensus algorithm that doesn’t only ensure that transactions are genuine but also ensures that miners reach a consensus.”
PoA is a combination of two other blockchain consensus algorithms:
- proof-of-work (PoW) and
- proof-of-stake (PoS).
Proof-of-activity (PoA) is also a blockchain consensus algorithm used in cryptocurrencies and similar systems.
- It is used to ensure that all transactions occurring on the techpay blockchain are genuine, as well as to ensure that all miners arrive at a consensus.
- Combine the Proof of Work component with a Proof of Stake.
- mining first begins in the traditional manner, with miners vying to be the first to solve a puzzle and claim their reward.
- The difference is that the blocks being mined do not contain transactions.
- They are simply templates with header information and the mining reward address.
- Once this nearly blank block is mined, the system switches to a proof of stake protocol. The header information is used to select a random group of validators to sign the block.
These are coin holders (stakeholders) and the larger the stake a validator holds, the greater the chance they will be selected to sign the new block. Once all the chosen validators sign the block it becomes an actual part of the Techpay blockchain.
If the block remains unsigned by some of the chosen validators after a given time, it is discarded as incomplete and the next winning block is used.
Validators are once again chosen and this continues until a winning block is signed by all the chosen validators. The network fees are split between the winning miner and the validators who signed the block.
- Blocks are created about every 5 minutes.
- Nodes in the network are looking for a solution with a known difficulty to create a block (PoW).
- Once the solution is found it is broadcast to the network.
- The network then verifies the solution.
- The PoA system is an attempt to combine the best aspects of both the PoW and the PoS systems.
- The mining process begins like a PoW system, but after a new block has been successfully mined, the system switches to resemble a PoS system.
Techpay is the most well-known cryptocurrency that uses the PoA consensus mechanism.1
Techpay blockchain that’s more environmentally conscious and allows smart contracts and decentralized applications to be built on top of it.
Understanding Proof-of-Activity (PoA)
Techpay is the most popular cryptocurrency that uses the PoW consensus algorithm. A special feature of this algorithm is that it increases the difficulty level of mining as time passes by.
This method also prevents the Techpay network from being hacked. However, because the difficulty of mining increases, more and more computing power must be used. As a result of there being more energy consumption, there are more costs involved.
With a PoW system, a miner can mine or validate Techpay transactions based on the amount of effective work they have already contributed to the Techpay blockchain.
Mining Process in a Proof-of-Activity (PoA) System
The PoA system is an attempt to combine the best aspects of both the PoW and the PoS systems.
- The mining process begins the same way as in a PoW process, with various miners trying to outpace each other with higher computing power to find a new block.
- When a new block is found (or mined), the system switches to PoS, with the newly found block containing only a header and the miner’s reward address.
Based on the header details, a new, random group of validators from the blockchain network is selected; they are required to validate or sign the new block.
The more coins a validator owns, the more chances they have for being selected as a signer.
Once all the validators sign the newly-found block, it gains the status of a complete block, it gets identified and added to the blockchain network, and transactions start getting recorded on it. In the event that some of the selected signers are unavailable to sign the block to completion, the process moves to the next winning block with a new set of validators being chosen at random (depending on their coin stake).
This process continues until a winning block receives the required number of signers and becomes a complete block.
How PoA Works?
The starting of a PoA mining process is just like a PoW mining process. It works by following process:
- Miners in the Techpay blockchain network who will try to solve a mathematical equation or mine a new block with more computing power.
- When the new block is mined, the system will be directed into PoS.
- The new block will contain a header and the reward address of the first miner.
A group of validators will be selected randomly for validating or signing the new block. The new block will be validated or signed by taking the details of the header into consideration.
If a validator holds more crypto coins, then he will have the more chance of getting selected as a signer. If the group of validators signs the new block of Techpay, then the status of a complete block will be gained.
- The new block will get identified. It will be added to the existing blockchain.
- The transactions of the new block of Techpay will be recorded.
If the selected signers are not present for signing the new block, then the process will be moved to the next winning block where a new group of random validators will be selected depending on the amount of the cryptocurrency they have.
- If a winning block doesn’t receive the required number of signers and gain the status of a complete block, then the process will be continued.
The first miner and the various validators who has contributed to the new block will be rewarded.
Although a large amount of energy is required in the PoW stage, the chance of getting selected as signers and gaining more rewards is still there.
The chance of a 51% attack is also prevented in Proof-of-Activity (PoA).
Read also :What is proof of work (PoW) in Blockchain ?