What is Proof-of-History (PoH)?
Let's find out Proof-of-History (PoH) meaning, definition in crypto, what is Proof-of-History (PoH), and all other detailed facts.
Proof-of-History (PoH) is a consensus mechanism that decreases the load on network nodes while processing blocks by integrating time itself into the blockchain. Nodes contain internal clocks that validate events and time.
In a Proof-of-Work (PoW) scenario, the successful block miner is the first to evaluate the suitable nonce. This nonce takes a received quantity of computer power. Proof-of-History (PoH) is a bit different since it is able to overcome a verifiable delay function (VDF) by running a particular set of chronological steps. Since no parallel processing is allowed, evaluating the time it will take for each step is easy.
PoH employs Bitcoin's SHA-256 algorithm to provide a reliable time-tracking mechanism within the decentralized blockchain. SHA-256 is a variant of SHA-2, a sophisticated encryption method created by the National Security Agency (NSA).
The only blockchain that uses the Proof-of-History algorithm is Solana. Hence, the blockchain can process about 60,00 transactions per second, making it very scalable. It also ensures that evaluating the timing of a transaction is quicker.
The mechanism is based on Proof-of-Stake; however, it does have a varying technique for calculating time. To evaluate the passage of time, historical events are currently being employed. These events are made into a hash, which can only be produced by prior events. It is impossible to counterfeit the hash.
However, Proof-of-History has some drawbacks. For instance, there were several attacks in Solana found in the past that were caused by Proof-of-History. Also, the technique was never tested on a wide scale, so there are no guarantees that it actually operates without any errors.
Proof-of-History (PoH) VS Proof-of-Stake (PoS)
There are a lot of similarities between Proof-of-Stake and Proof-of-History algorithms. This is because Proof-of-Stake was used as a base for creating Proof-of-History.
In both methods, validators are utilized to ensure that transactions are validated, and new blocks are created. Also, both of them are developed on the very same foundation.
Nonetheless, there are major differences between these two algorithms. Proof-of-Stake employs the timestamp function. This indicates that every node depends on the network's timestamp. The network functions in a slower manner because time has to flow via the network first.
Besides, Proof-of-Stake uses the Verifiable Delay Function, which computes the time based on previous events. Following an examination of these occurrences, a hash function is created that can be verified by anyone. This hash is added to each and every block produced by the network.