Consensus algorithms and their differences: part 2 🔍

We continue to acquaint you with the most popular consensus mechanisms — ways of agreement regarding the validation of transactions in the blockchain system.

Earlier we have already talked about the Proof of Work (PoW), Proof of Stake (PoS) and Delegated Proof of Stake (DPoS) algorithms and today we will try to clarify others.

👉🏻 So, Proof of Capacity (PoC) is a consensus mechanism that requires users to share free capacity on the HDD to generate new tokens.

👉🏻 Proof of Importance (PoI) is a modified Proof of Stake that estimates not only the number of tokens, but also account activity and continuous online presence.

👉🏻 Proof of Authority (PoA) is a consensual mechanism that is used on networks that require user authentication. For the network, this means that only trusted nodes can participate in mining.

To reduce the likelihood of an attack and be confident in all agreements, it is important to distinguish all the consensus algorithms and understand which one will be the most reliable for you.