#Blockchain
The Proof of History blockchain relies on the use of timestamps to prove the instance of when a block was created on the blockchain. It is a helpful tool that ensures that validators on the blockchain agree on when things happen.
• The Solana blockchain is a creative blockchain which introduced the Proof of History (PoH) mechanism while working alongside the Proof of Stake (PoS) consensus mechanism.
• Proof of History is an example of a cryptographic clock that uses timestamps for transactions with a hash that could showcase when the transaction was validated.
• The core foundation of the POH mechanism is the Verifiable Delay Function (VDF).
The blockchain industry has evolved from what it was when the world was first introduced to Bitcoin (BTC) in 2009. Today, there are hundreds of blockchains, and some of them operate differently from the primary blockchains, Bitcoin and Ethereum.
The Bitcoin blockchain records and processes transactions using the Proof of Work (PoW) consensus mechanism, while the Ethereum blockchain uses the Proof of Stake (PoS) consensus mechanism. However, other blockchains use neither of the two. One such blockchain is Solana (SOL).
Solana, the native blockchain of the SOL coin, is a layer-one (L1) blockchain network. As a Layer-one (L1) blockchain, developers can build various applications and networks on it. The Solana blockchain is a creative blockchain that introduced the Proof of History mechanism while working alongside the Proof of Stake consensus mechanism. In this article, we explore what the proof-of-history consensus mechanism is and how it operates.
The Proof of History consensus mechanism is a creative approach developed by the founders of Solana to keeping track of time on a blockchain. Picture it as a super reliable clock, but for the digital world. The Proof of History blockchain relies on timestamps to prove the instance of when a block was created on the blockchain.
It is a helpful tool that ensures that validators on the blockchain agree on when things happen. Proof of History helps prove a series of records of transactions that took place at a particular event and at a specific time.
An excellent example of how the timestamps work is an individual in a car race game taking pictures of the event. This person, with the help of his camera, can show that the photo was taken during the car race show. This shows that the image was taken within a specific time.
At the core of PoH is the Verifiable Delay Function (VDF). The VDF is like a timestamping superhero. When a new event or transaction occurs on the blockchain, the VDF swings into action, creating a timestamp. PoH's special sauce of PoH lies in its ability to create these timestamps in a way that's hard for anyone to cheat. It's like making a secret code that proves time has passed, and it's not something someone can easily fake.
This sequence of timestamps forms a historical record that ensures everyone agrees on the order of events. It's like putting events in a neat and tamper-proof order so everyone sees the same story. Solana, the brain behind PoH, introduced this concept to the world. Anatoly Yakovenko, the founder of Solana, created the idea and shared it with the world in 2017 through a whitepaper.
Solana wanted to make blockchain faster, more secure, and capable of handling thousands of transactions simultaneously. This is when PoH was created, as a critical part of Solana's plan. In 2020, Solana created its first block using PoH, making history in the blockchain world.
The Verifiable Delay Function (VDF) is crucial to how Proof of History works. This is particularly true for a network like Solana, which runs the blockchain network. Here, the VDF first ensures that a particular number of steps are taken in order to validate but verifies the output in a quick and timely manner.
This way, there is enough time (often in milliseconds, but that’s enough for a blockchain, we suppose :p) between each event on the record VDF helps to create a complete and comprehensive record of every event taking place at a particular time on the network VDH is nothing but a decentralised timetable for a blockchain deploying this technology.
Image: The process of the verifiable delay function
This is how the VDF keeps a depository of events of a blockchain network like Solana.
PoH has some exciting features that make it stand out from other consensus mechanisms The following are the features of Proof of History:
PoH is the blockchain historian, guaranteeing unalterable historical data like transactions It achieves this by generating a unique code (fingerprint) for each data set, maintaining unwavering accuracy.
At PoH's heart lies VDF, the timekeeper. It ensures timestamps occur within a set timeframe, enforcing the correct sequence of events.
Proof of History introduces a decentralised clock to the blockchain, eliminating the need for a centralised authority Everyone on the network syncs up without a designated leader.
PoH isn't just about accuracy; it's about speed The PoH consensus mechanism was engineered for rapid transactions It transforms blockchain into a high-speed processor, reducing costs.
Every transaction or event receives a timestamp, a verifiable signature It acts as proof, transparently declaring when an event occurs.
Proof of History is a security shield, generating a unique code for each data set This prevents malpractices like double-spending and ensures a consistent, secure blockchain.
PoH collaborates with other mechanisms, like Proof of Stake (PoS), enhancing its efficiency. It's a cooperative approach to streamlined blockchain functionality.
PoH is considered a blockchain innovator. It introduces a fresh paradigm to the blockchain industry and optimises performance and speed across the blockchain.
Currently, Solana primarily only uses Proof of History (PoH) with practical Byzantine Fault Tolerance (pBFT) consensus, known as Tower BFT.
Solana uses Tower BFT and PoH in tandem. It is important to note that while Tower BFT handles transaction agreements, PoH acts as the digital timekeeper, ensuring accurate event sequencing—Tower BFT for consensus and PoH for precise timestamping.
Solana blockchain also uses the SHA256 hash function for hashing all events and transactions This function helps to receive input, generating a unique and unpredictable output Furthermore, Solana takes the transaction output and uses this as input for the next hash.
Solana's innovative approach, the PoH consensus mechanism, has strengths and drawbacks.
Advantages | |
Speedy Transactions | Proof of History speeds up transactions on the blockchain. It uses a clever timestamping trick to ensure everyone agrees on when things happen, cutting down the time it takes to confirm transactions. |
Secure Blockchain's History | PoH enhances the security of the blockchain's history. It creates a chronological record, like a superhero shield, protecting against bad actors trying to mess with the order of events and preventing issues like double-spending. |
Verifiable Delay Function (VDF) | PoH uses a Verifiable Delay Function to create timestamps that prove when events occur on the blockchain. This makes it hard for anyone to fake or cheat transactions in the blockchain. |
Speed | PoH is associated with Solana, and with this consensus mechanism, Solana can process over 65,000 transactions per second, making it one of the fastest blockchains. |
Advanced Version of Proof of Stake | There are various similarities between the Proof of Stake and Proof of History mechanisms. The Proof of History mechanism is an evolved version of the PoS mechanism. |
Disadvantages | |
Complex to Understand | PoH might be tricky for some to grasp. The concept involves cryptographic functions, making it challenging for newcomers to blockchain technology. |
Not Widely Adopted | Currently, Solana is the only blockchain that uses the PoH consensus mechanism. In web3, ther eare hundreds of blockchain networks. While PoH offers excellent benefits, it is not used by other networks yet. |
Potential for Scepticism | Some critics might cite that PoH is relatively new, and there could be scepticism within the broader blockchain community until it proves itself over time. This view is relevant, and hence, it is a drawback of this consensus mechanism. |
PoS | PoH | |
Selection Method | PoS picks validators based on the number of coins they hold and are willing to "stake" as collateral. It's like a lottery where having more coins increases your chances of being chosen. | PoH doesn't directly choose validators. |
Time Division | PoS divides time into slots and epochs. Validators propose blocks in slots, and committees check their validity. | PoH uses a Verifiable Delay Function (VDF) to create timestamps. This ensures a reliable historical record without needing a central clock. |
PoW | PoH | |
Validation Process | Miners solve complex puzzles using computational power to validate transactions and create blocks. | PoH doesn't involve complex puzzles. It uses a cryptographic function (VDF) to create timestamps based on the passage of time. |
Energy Usage | PoW requires a lot of energy, like a race where the fastest computer wins. | PoH is more energy-efficient than PoW, focusing on time rather than computational power. |
PoC | PoH | |
Mining Rights | PoC uses storage space; miners store pre-generated solutions to cryptographic puzzles on their hard drives. | PoH doesn't involve storage space. It relies on the recording of time to establish the order of events. |
Mining Process | When a new block is needed, the miner with the fastest access to the correct solution creates the block. | PoH uses VDF to create timestamps, ensuring a chronological record without relying on storage. |
As a BitDelta trader, understanding how the proof of history consensus mechanism works is essential to knowing how various blockchains operate.
The PoH mechanism is innovative, considering the time in its operation thanks to VDFs. Although this mechanism has faced strong criticisms as a weak consensus mechanism due to past attacks on the Solana blockchain, it is still in its early stages. It has a lot of room for improvement. To enjoy the benefits of how the proof of history blockchain operates, you can purchase the SOL coin today on BitDelta. The SOL coin is listed as a pair with the USDT token (SOL/USDT) for easy trading.
The Proof of History (PoH) is a consensus mechanism developed by the founders of the Solana network to keep a track of time on a blockchain. It's a super reliable clock, but for the digital world. The PoH blockchain relies on the use of timestamps for proving the instance of when a block was created on the blockchain.
PoS divides time into slots and epochs. On the other hand, PoH uses a Verifiable Delay Function (VDF) mechanism to create timestamps, ensuring a reliable historical record without needing a central clock.
Yes, Solana is a Proof of History blockchain. In fact, Solana is the network that first introduced the PoH mechanism to the blockchain community.
Though not as common as other consensus mechanisms, PoH is a safe solution for a blockchain. It has its pros and cons like other mechanisms, but it’s not worse off than they are.
This article is for informational purposes only and not intended as investment or financial advice. It contains opinions and speculations that are subject to change without notice.
The author and publisher disclaim any liability for decisions made based on the content of this article. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions.
Join the community to receive exclusive market analysis and updates!
Ignite your financial journey with BitDelta's diverse asset classes.
