Jakarta, Pintu News – Proof of History (PoH) is a unique blockchain innovation developed by the Solana network. Unlike traditional consensus mechanisms such as Proof of Work (PoW) or Proof of Stake (PoS), PoH introduces a new way of recording and sorting transactions by time.
With this approach, Solana is able to process transactions much more quickly and efficiently, making it one of the highest performing blockchains. This article will briefly discuss what PoH is, how it works, and its advantages in the Solana ecosystem.
Proof of History (PoH) is a new consensus mechanism developed by Anatoly Yakovenko, founder of Solana Labs. The main concept of PoH is that the sequence of events in a Blockchain network is as important as the events themselves. The ability to prove the sequence of events is essential for maintaining the integrity of the network.
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To achieve this, PoH uses the Verifiable Delay Function (VDF), a cryptographic function that generates a timestamp for each block in the Blockchain. The VDF is designed to be difficult to manipulate, as it is delay-hard and memory-hard, making it difficult for malicious actors to forge the timestamp.
A VDF-generated timestamp is inserted into each block, creating a verifiable and immutable record of transactions, indicating the order in which they occurred. By using PoH, Blockchain can achieve fast finality, meaning that once a block is added, it is considered final and irreversible.
Proof of History (PoH) is a unique consensus mechanism. Here’s a simple step-by-step explanation of how it works:
Cryptographic Timestamping:
At the core of PoH is the use of cryptography-based timestamps, which utilize sequential hash functions and pre-image resistance. This function accepts inputs (the current state of the Blockchain and a random seed) and produces a unique, irreversible output (the hash). This hash serves as a verifiable timestamp.
Creating a Hash Chain:
Solana (SOL) forms a hash chain by repeatedly applying hash functions to the results of previous hashes. Each step is called a “tick”, which represents the elapsed time based on the number of hash operations. This creates a continuous and verifiable time trail for sequencing transactions.
Recording Transactions:
When a transaction is performed, it is sent along with the latest observed hash. The validator verifies the validity and timing of the transaction by ensuring that the hash is in the current PoH order. This proves that the transaction occurred at a specific time.
Consensus:
Transactions that have been time-stamped using PoH are then processed with a Proof of Stake (PoS)-based consensus algorithm-in this case, Solana’s Tower BFT. Validators stake SOL tokens to participate and get rewarded for their role in securing the network and validating transactions. With the help of PoH’s timing system, Tower BFT can reach consensus quickly, allowing Solana to process thousands of transactions per second.
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Advantages of PoH:
PoH offers a number of advantages, such as high scalability (thousands of transactions per second), low latency, high security, and energy efficiency as it does not require large computing power like Proof of Work (PoW) systems.
Verifiable Delay Function (VDF):
The main component of PoH is VDF, which ensures block producers go through a certain process to get their block production slots. Solana adds a hash of the data relating to the previous state in the transaction sequence, thus creating a verifiable timestamp without the possibility of reconstructing the data or creating alternative versions.
Here is an explanation of the key differences between Proof of History (PoH) and Proof of Stake (PoS):
| Consensus Mechanism | Proof of Stake | Proof of History |
|---|---|---|
| Description | Rely on validators who are selected based on the amount of crypto assets they are staking as collateral. | Uses the Verifiable Delay Function (VDF) to record and verify the time between blocks. |
| Rewards | Validators earn returns periodically from the assets they are staking. | Participants are rewarded with a transaction fee for each block they validate. |
| Main Functions | Validation is done by verifying the ownership of the staked crypto asset. | Validation is done based on the timestamp of the transaction. |
| Safety vs Efficiency | It is more efficient than Proof of Work, but the security level is relatively lower. | Improving scalability while utilizing existing consensus mechanisms. |
| Energy Consumption | More energy efficient than Proof of Work. | It is highly efficient as it does not require heavy computational calculations. |
The Proof of History (PoH) consensus used in the Solana network offers many advantages, but also has some drawbacks that need to be considered. The following is a description of the advantages and disadvantages:
Faster Transactions:
PoH eliminates the need for each node to agree on the order of transactions one by one, making the transaction process much faster than some other consensus mechanisms.
High Scalability:
Since the transaction process is fast, the network is able to handle a larger volume of transactions per second. This makes PoH suitable for use in real-world scenarios that require high scalability.
Energy Efficiency:
Unlike Proof of Work which requires complex calculations, PoH is more energy efficient as it does not rely on heavy computing.
Maintaining Decentralization:
PoH maintains the principle of blockchain decentralization because transaction processing is not controlled by one particular party, so trust and security are maintained.
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Higher Complexity:
PoH mechanisms add complexity to the network architecture, potentially increasing the risk of bugs or security holes.
High Hardware Requirements:
The Verifiable Delay Function (VDF) used requires quite powerful hardware, which may initially increase the cost for those who wish to join as nodes in the network.
PoW validates transactions in a computationally heavy and energy-intensive manner. PoS selects validators based on the number of staked assets, which is more efficient and energy-efficient. PoH uses timestamps to speed up the transaction sequence, as implemented in Solana.
Solana is the main blockchain that uses the Proof of History mechanism.
Not always. PoW is more secure but energy-intensive. PoS is more efficient and environmentally friendly, but can be less decentralized.
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