What is a proof of assignment (PoA)?
Proof of Assignment (PoA) is a consensus mechanism which requires less power and can run on relatively low-end hardware compared to its predecessors. PoA claims to score higher than traditional consensus algorithms like Proof of Work (PoW) and Proof of Stake (PoS), which seem to consume more power and require a lot more computing power and memory to operate.
Key points to remember
- Proof of assignment (PoA) is a cryptographic consensus algorithm used to confirm agreement on a distributed, decentralized network.
- Optimized to coordinate the state of devices connected to the Internet of Things (IoT), in PoA each IoT device must perform simple but very important cryptographic tasks, known as “Micro Mining”.
- PoA can enable simple devices to reach consensus because it is more efficient and less energy and resource dependent than traditional PoW or PoS consensus algorithms.
Understanding Proof of Assignment (PoA)
A consensus mechanism is a fault-tolerant algorithm that is used in distributed computer networks and block chain applications in order to achieve the necessary agreement on a single data value or a single network state between decentralized processes or multi-agent systems, such as with cryptocurrencies. It is also useful for record keeping and coordination between a series of distributed connected devices, such as with the IoT.
Major home appliances, such as vacuum cleaners, washing machines, and refrigerators, as well as other commonly used consumer electronics, including smart watches and printers, are now equipped with microprocessors, microcontrollers, and modules. advanced memory devices compatible with connection to the Internet and each other – the basic concept of the IoT. It makes these devices suitable for capturing, processing and exchanging data in real time with other systems and networks.
With their onboard processing power, IoT-enabled devices can be used for cryptocurrency mining. Mining is a mathematical activity performed by computers through which new crypto coins are generated and blockchain transactions are authenticated. However, since the available memory and processing power of these devices are limited, their contribution to mining remains low. The mechanism of operation of the PoA algorithm facilitates this type of “light” mining.
Sample Proof of Assignment (PoA)
A project using the PoA is called IOTW. IOTW claims to be able to handle a throughput of over a million transactions per second, although this remains to be seen in practice.
The IOTW blockchain uses the PoA consensus algorithm and has introduced micro-mining, which enables lightweight mining on IoT devices by eliminating the need for device-level transaction ledger storage and maintenance. Instead, ledger storage and maintenance is outsourced to one or more pre-established trusted vendors. knots on the blockchain network.
Resource-constrained IoT devices perform the limited, affordable, and simple task of finding a chop value and send it to the trusted node(s). These network nodes collect this transactional information relayed to them, validate it, and then create a block template with an appropriate number of validated transactions.
Benefits of Proof of Assignment (PoA)
PoA offers many supposed benefits. First, home devices can be used to aid in mining, providing a realistic solution to the scalability and transaction processing delay issues faced by today’s popular cryptocurrency networks.
Additionally, device owners can schedule when their devices contribute to mining during device idle time. They may also voluntarily share or sell the data generated and processed by their devices to earn cryptocurrencies, as such data may be useful to a diverse group of entities involved in market research, the study of consumption patterns and town planning.
Finally, the low power consumption allows this mining contribution to remain a reasonably economical activity, depending on the network configuration and operating mechanism.