MODULE’s PoSTT vs. Proof of Work

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MODULE

4 min readFeb 23, 2019

This article explains how the algorithm of MODULE is different from that of Bitcoin, and what this difference means to potential users

The much-hyped blockchain technology has the potential to disrupt IT in ways not seen since the Internet arrived. As you probably know, in a Blockchain network, the original consensus algorithm is Proof of Work, or PoW. Let us point out some of its peculiarities, and think whether there can be any alternatives.

But first of all…

Why Do We Need Proofs?

We need to understand why any type of “proof,” whether it be proof of work, proof of stake, or any other “proof” is required. Basically, proofs are necessary for avoiding the double-spending issue.

Double-spending is a potential problem unique to digital currencies as digital information, unlike physical currencies, can be reproduced or replicated relatively easily. However, with digital currency, there is a risk that the holder could make a copy of the digital token and send it to a merchant or another party while keeping the original.

The double-spending issue is not the only reason why proofs are required. Proofs are also essential for providing a decentralized and trustworthy environment for consensus.

These three aspects (decentralization, trust and consensus) are achieved with the help of miners who keep the network operating.

How Does Proof of Work…Work?

To put it simple, Proof of Work is a consensus mechanism in which nodes are solving complex math problems. It is used in Bitcoin and some other cryptocurrencies.

“[Bitcoin] is a remarkable cryptographic achievement…The ability to create something which is not duplicable in the digital world has enormous value.” — Eric Schmidt.

Some people believe that Proof of Work is more than a simple mechanism, it is a combination of mathematics, philosophy, and psychology; its original goal was to prevent network centralization. But did it really happen?

What is Wrong with PoW?

PoW miners have to spend a lot of money on computer equipment, primarily GPUs (graphics processing units). Those who criticize Proof of Work argue that the hardware required for mining creates too high of a barrier of entry for users.

The market is still not open, cheap, and flexible enough for virtually anyone to participate.

Running the computer equipment also requires huge amounts of electricity. Obviously, this cost is paid by miners as well. There are a lot of environmental concerns that stem from the required electricity and hardware of Proof of Work.

One more issue: today, a lot of mining power is located in one certain region — China, while it was supposed to be distributed amongst a huge number of people all across the globe. When a large group in one location gains too much power, the network becomes relatively centralized, and that affects the trust in the network.

Is there an alternative?

PoSTT

PoSTT (Proof of Space, Time and Transaction) is a consensus algorithm, developed by the MODULE team. It allows users to participate in the mining of MODL coin even with such portable devices as smartphones. Utilizing mobile phones, tablets and other popular devices is expected to remove the barrier of entry for users.

On top of that, no initial investment is required.

MODULE is going to transform the mining environment from a place where resources are in the hands of a few individuals, to a truly distributed blockchain where the public shares their resources. Anyone with a smartphone will be able to support the blockchain network, and get rewards for that.

PoSTT algorithm makes mining more environmentally friendly, as the mining process is spread out over millions of devices that already have available capacity. Moreover, one can expect even more positive tendency over time as smartphones become more powerful and energy efficient.

Not only people living in developed countries will get the opportunity to participate in mining. We wish to have many people holding smartphones in underdeveloped countries acting as miners and receiving rewards that can drastically change their lives.

Conclusion

There is a paradox on the cryptocurrency market: small groups of people with a huge amount of capital possess cryptocurrencies. This certainly contradicts the original idea of the virtual currencies.

Blockchain today has lost its true value in the process. In this sense MODULE is about to implement true decentralization.

MODULE presents any smartphone user with the opportunity to be a part of the alternative.