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Proof of Capacity Meaning

Proof of Capacity (PoC), also known as Proof of Space, is a Consensus Mechanism that uses a miner’s Available Hard Drive Space to secure the network, rather than Computing Power (PoW) or Capital (PoS). Miners Pre-calculate a massive list of Possible Solutions to the block puzzle and Store them on their hard drives in a process called Plotting. When a new block is needed, the miner simply Searches their hard drive for the Best Match.The Main Selling Point of PoC is its Energy Efficiency.

Running a Hard Drive uses a tiny fraction of the electricity required to run a GPU or ASIC miner. This makes PoC a Green Alternative to Bitcoin. Furthermore, Hard Drives are Ubiquitous; almost everyone has one, which (in theory) makes the network More Decentralized because anyone with a Laptop can participate in mining from their home.Technically, PoC is Fast.

Because the Answers are already Calculated, the miner doesn't have to Do any Work during the actual mining process; they just have to Read the data. This allows for Faster Block Times.

Projects like Chia (which uses a version called Proof of Space and Time) became very popular because they allowed Regular People to Farm crypto using their Extra Storage Space instead of Burning Electricity.The Risk of PoC is the Industrialization of Storage. Just as ASICs took over Bitcoin mining, Professional Mining Farms can buy Petabytes of hard drive space, making it Unprofitable for a Home User to participate.

Furthermore, Constant Reading and Writing can Wear Out a hard drive faster than normal use. Despite these challenges, Proof of Capacity remains a Strong Contender in the quest for a Sustainable and Decentralized consensus model.

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Finery Markets BVI Limited (“Finery Markets”) provides software, technology infrastructure, and related Information and Communication Technology (ICT) services on a Software-as-a-Service (“SaaS”) basis. Finery Markets acts solely as a software vendor and does not operate a trading platform, does not intermediate, match, execute, clear, or settle transactions, and does not engage in any activities that would require regulatory authorisation under applicable laws.

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