Why Ekta opted to use Proof-of-Authority over Proof-of-Work or other consensus mechanisms
Blockchain technology is fast gaining mainstream traction, allowing for the development of new ways to apply the tech to our everyday lives. We’ve seen this with the novel application of NFTs to real-world industries like real estate and even the hospitality industry. But to understand how we got here, we need to look at the foundation of the blockchain, in this case, specifically EktaChain.
Established in Q4 of 2021, the Ekta team wanted to go with the most up-to-date consensus mechanism (aka consensus protocol or consensus algorithm) for the foundation of their blockchain. Initially, Proof-of-Stake showed a lot of potential, but then they found Proof-of-Authority. The tech was so new that many people had never heard of it before. So why did the team consider this to be the best consensus mechanism and how does it compare to Proof-of-Stake and Proof-of-Work?
What is a consensus mechanism?
For the blockchain to accurately store and distribute data (like cryptocurrencies), participants have to determine ownership and the right conditions of the system. A consensus mechanism is the means by which the blockchain nodes control and regulate this system, keeping it secure from hackers and preventing bad actors from committing fraud or double-spending.
There are a number of consensus mechanisms all with the sole purpose of securely regulating the blockchain, but for this article, we’ll be focusing on the following:
- Proof-of-Work
- Proof-of-Stake
- Proof-of-Authority
Proof-of-Work (PoW)
PoW was the world’s first true consensus mechanism and has been widely used in the blockchain industry. The consensus mechanism requires crypto miners to compete in solving mathematical problems with the first to do so, receiving the right to update the blockchain and a predetermined amount of crypto. The name stems from the massive amount of processing power the system needs to complete each transaction. Despite having a reputation for being highly reliable, PoW consensus mechanisms have some obvious and unsustainable scalability issues due to their energy-intensive nature.
Proof-of-Stake (PoS)
The PoS consensus mechanism presents solutions to many of the issues that PoW currently faces and focuses on improving speed, efficiency, and overall scalability. With PoS, instead of participants mining, the blockchain implements validators who “stake” crypto to earn the right of validating a new transaction. Once the validation is complete, a set number of competing validators vouch for the block’s accuracy until the required amount of verifications is reached. Next, the network updates the blockchain and distributes crypto-based rewards to all participating validators.
PoS is a more environmentally friendly alternative to PoW and is deemed to be more secure against hacks. Its primary criticism stems from the fact that the more you stake, the higher your chances of becoming a validator, a system that’s believed to carry the risk of becoming more centralized.
Proof-of-Authority (PoA)
Proposed by Ethereum cofounder Gavin Wood in 2017, PoA is an adjusted version of the PoS consensus mechanism and requires very little computing power. Where validators stake their cryptocurrency with PoS, PoA requires nodes to stake their reputation, meaning that they earn the right to become a validator by passing a preliminary authentication. With Ekta’s focus on environmental issues, implementing a PoA consensus mechanism was the obvious choice. But PoA also holds many other benefits. Thanks to its 16 validator nodes, EktaChain (Ekta’s native mainnet) offers speed and performance without sacrificing security. The consensus mechanism allows for a high transaction rate as authorized nodes generate blocks in sequence at fixed intervals.
To learn more about Ekta’s blockchain foundation and tokenomics, visit https://resources.ekta.io/ekta-whitepaper-v2/, and join our weekly Twitter Spaces and Discord for up-to-date information.
