Proof-of-work blockchains have faced heavy criticism in recent times.
The PoW model uses large amounts of energy (in most cases), tends to encourage centralization, and has several potential security flaws that might be better mitigated by other consensus algorithms or variations of PoW.
Before moving on to how Avesta’s proof-of-work mining model solves the problems faced by most other blockchains using the proof-of-work consensus algorithm, let’s briefly examine some alternative consensus algorithms being implemented.
The Two Ways Developers Approach Proof of Work Problems
There are many different schools of thought when it comes to mining. Broadly speaking, all of the differences fall into one of two competing camps: those who believe proof-of-work can be improved upon, and those who believe it should be done away with entirely.
Some blockchains have opted for so-called “ASIC-resistant” proof-of-work mining, like Vertcoin and DASH. Blockchains like these try to make the mining process more inclusive by making the complex mathematical problems that miners must solve easier.
While this helps keep mining decentralised, it doesn’t address the issues of a 51% attack or the double spend problem like AVE does.
Others choose to achieve consensus by means other than PoW.
Consensus Algorithms Other Than Proof of Work
As mentioned, proof-of-work is not the only way to achieve consensus within a blockchain.
Proof of stake, for example, replaces miners with “forgers.” Forgers stake a portion of their coins for a chance to win the next block reward.
Some of the benefits of proof-of-stake include reduced energy cost, increased scalability, and lower transaction fees. While very few blockchains have yet to implement a purely proof-of-stake system, PoS should provide for a blockchain that can be used more easily on a larger scale with less cost.
Another kind of consensus algorithm is that of proof-of-spacetime.
Proof of spacetime takes advantage of the fact that most computer users have a large amount of unused storage space on their hard disks.
Proof of spacetime requires miners to prove that they have stored data on their hard drives. As long as they do this, they remain an active node.
Much like proof of stake, proof of spacetime requires very little energy.
Avesta’s Innovative Approach to Proof-of-Work
Avesta’s mining model differs from other proof-of-work systems in several ways.
This model reduces energy costs and is more inclusive for smaller miners. The Avesta white paper explains:
By creating a node consensus mining reward system, Avesta introduces a revolutionary way of mining without pools. Instead of all miners and pools competing, Avesta has developed a way to have all miners working together, giving each miner a fair share proportionate to their contribution.
The mining of AVE tokens solves two of the biggest flaws inherent in other PoW systems.
Cryptocurrencies with slow block speeds are vulnerable to the possibility of a transaction being spent twice. A transaction that has yet to be confirmed could be sent twice, in which case the coin that was sent with the largest fee usually becomes part of the block.
Avesta’s mining process solves this dilemma first and foremost by having ultra-fast block speed. In addition, accounts are checked via the wallet and node to prevent double spending.
One of the biggest risks that PoW blockchains face is the possibility of a hostile takeover of their networks. If a dishonest miner gains control of the majority of hashing power, it can destroy the network.
In Avesta’s Proof of work mining model:
“miners and pools work together instead of against one another, preventing an external party attacking the network and changing the blockchain. The notion of the 51% attack becomes obsolete.”
Avesta Mining Makes Proof of Work Secure and Sustainable
In conclusion, the process of mining AVE tokens solves some of the most common problems associated with the PoW consensus algorithm.
AVE can be used for global business transactions on both an individual and industrial scale as a result.