Bitcoin POW algorithm: Why is it not as efficient as you think
For over a decade, the consent of the world’s largest cryptocurrency, Bitcoin, is based on the algorithm of work proof (POW) to secure its decentralized network. This algorithm was widely accepted by other cryptocurrencies and blockchain networks due to the high level of security and decentralization. However, many critics have long claim that this approach is ineffective and can lead to a breakdown of block time, which promotes large miners at the expense of small users.
In this article, we will examine why the Bitcoin algorithm does not use the shortcuts chain of lower rugs and does not analyze alternative approaches that could potentially improve its performance.
** current algorithm
The Bitcoin algorithm is based on the SA-256 abbreviation function, which has been designed to be intensive computing. Each block in blockchain contains a unique digital signature using the recipient’s public key. To confirm transactions and create new blocks, miners must solve complex complex mathematical puzzles using a shortcut function.
Here’s how it works:
- Miners compete to find a solution of the following equation:
2^256 * 13^83 % 2^64 = 0
Where X is the block number, Y is the target shortcut.
- Miner, which finds the solution, first adds a new block to blockchain and transfer it to the network.
- Miners check that the new block contains correct transactions, checking that the sender’s public key was used at least once before.
Problem with current Power’s algorithm
The current algorithm suffered from several problems:
Distribution of blocks of flats : As you mentioned, the current POW algorithm leads to a highly unbalanced block distribution. Large miners dominate the web, while users on small scales often lag behind.
* Computing complexity
: Calculation requirements for Bitcoin extraction are subject to interpretation for years, which makes it more unacceptable and less energy -saving.
Energy consumption : Mining Bitcoin requires significant amounts of energy, which can be the main environment.
Alternative: algorithm based on brief
To solve problems with the thesis, some researchers have proposed alternative algorithms that use shortcuts of lower Dificulty. Here is the review:
Algorithm based on briefly : Instead of using complex mathematical puzzles to create new blocks, this approach is based on the abbreviation function itself. It is about reducing the difficulty finding a solution by increasing the size or number of input data in the abbreviation function.
Modular abbreviation functions : modular shortcut, such as SHA-256 with a larger input size (e.g. 512 bits takes 256), can be designed for the production of narrower output shortcuts with higher safety.
Benefits of an algorithm based on briefly
Using a briefly based algorithm may have several benefits:
* Improved performance : by reducing calculation requirements for extraction, hash -based algorithms may increase the number of blocks that can fit in a given time.
Reduced energy consumption : With the increase in energy prices, algorithms based on hash can help reduce energy consumption by increasing block production rates.
Increased decentralization : Hash -based algorithms can promote decentralization by reducing the impact of large miners on the network.
Examples and implementation
Several cryptocurrencies have implemented algorithms based on hash, including:
Calm : Proof-V-Stake cryptocurrency (POS), which uses a modular abbreviation function to create new blocks.
Shard : The upcoming cryptocurrency that uses the algorithm based on hash for the production of new blocks.
* MASTERNODE : Decentralized network or nodes that check transactions using a hash -based protocol.
