IOTW Protocol – The New Disruptive Blockchain for IOT
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Introducing the innovative Proof of Assignment Algorithm
If you ever thought Proof of Stake is the new step in the evolution of blockchain then think again- there’s a much superior consensus algorithm, called Proof of Assignment.
The existing blockchain algorithms Proof of Work (PoW) and Proof of Stake (PoS) are fundamentally flawed because despite claiming to be able to solve energy consumption and verification issues, these consensus methods still come short.
Take, for example, Proof of Work (PoW) – which aims to solve computational problems in order to verify transactions on the blockchain. While Proof of Work rewards miners with newly generated crypto and transactions fees, the method is highly difficult due to complex computation puzzles that miners must solve to get the rewards. Miners go to great lengths to increase their computational power for the purpose of mining block rewards profitably. The situation results in huge electricity bills, which make PoW mining quite uneconomical.
And that’s not the only problem with Proof Work mining. As more and more energy is used in mining crypto, the environment is impacted drastically. Further, there’s the problem of unfair mining in which a few powerful miners decide to take control of all the mining hardware, locking out other miners out of the system completely.
Enter Proof of Stake. As the name suggests, Proof of Stake attempts to move the mining power by ensuring miners bet on each block in order to timestamp it.
Rather than spend time and electricity solving computational problems, nodes in the network place bets on blocks. Once a bock is solved, whoever placed a bet on it gets rewarded. Also, dishonest nodes get penalized and the amount of bet they had put get debited.
While PoS incentivizes honesty and discourages dishonestly, it is still an expensive timestamping method. A minimum amount is required to place a bet. Not everyone is able to afford this sort of balance. As a result, almost all miners are locked out from participating in betting and getting rewarded.
In essence, PoS consensus method ensures that those who cannot meet the threshold will stay poor as the rich get richer and exerts their influence over blockchain networks.
This is where IOTW PoA comes in.
IOTW is attempting to solve problems associated with PoW and PoS timestamping methods by offering a game-changing Proof of Assignment consensus algorithm.
The patented IOTW Proof of Assignment aims to reduce computational power, offer security and make mining more fair for small miners.
In the Proof of Assignment, nodes in the network do not need to have more coins in order to do mining. This is meant to encourage more IOT devices to participate and earn block rewards and transaction fees. Each node is randomly selected from the network, and in doing so, they get a shot at mining the next block on the network and potentially earning the rewards.
Anyone with an IOT-enabled device will be able to mine IOTW coins in a cheaper, faster and efficient way.
IOTW is also introducing something called a Trust Node – the blockchain mining architecture where the IOTW ledger is stored. Trust Node will be used for mining IOTW coins though it cannot perform the final verification process. It’s only IOT devices that hold the assigned private keys can perform the final verification and earn block rewards.
In addition to the Proof of Assignment algorithm, IOTW has built micro-mining to be used for mining blocks.
For those who are worried about a few individuals controlling blockchain, Proof of Assignment is the better algorithm that aims to dispel this fear. By selecting nodes randomly, it will be easier for IOT device owners to mine coins regardless of how much coins their nodes posses.