What is Proof of Useful Work?
The Defenition of Proof of Usefull Work or PoUW for Short is as follows: Proof of Useful Work (PoUW) is a novel blockchain consensus protocol used to improve efficiency and security of blockchain. Classical Bitcoin mining is a wasteful and resource- intensive process as its Proof of Work (PoW) protocol resembles a lottery and the underlying computational work is not useful otherwise.
Proof of Useful Work (PoUW) is a consensus mechanism that is being developed as an alternative to the widely used Proof of Work (PoW) and Proof of Stake (PoS) mechanisms. The main goal of PoUW is to create a more energy-efficient and environmentally friendly way of maintaining a decentralized network.
In PoW, miners use computational power to solve complex mathematical puzzles in order to validate transactions and add them to the blockchain. However, this process consumes a significant amount of energy, and has been criticized for its environmental impact. In PoS, on the other hand, validation is based on the number of coins held by a node, which can lead to centralization.
PoUW, in contrast, aims to create a mechanism that utilizes the computational power of nodes for useful tasks, such as scientific research or data analysis, rather than simply solving puzzles. This way, the energy used for maintaining the network is put to good use and has a tangible benefit.
One example of PoUW is the project called ‘CureCoin’ which utilizes the computational power of the network to perform protein folding simulations, which can aid in drug discovery and disease research. Another example is ‘Gridcoin’ which uses the computational power to help with scientific research projects such as analyzing radio telescope data, and also has a feature of ‘Research Rewards’ in which participants can earn cryptocurrency for their contributions to the network.
PoUW is a relatively new concept and is still in the early stages of development. However, it has the potential to create a more sustainable and socially beneficial decentralized network. It is also expected that with the development of more and more useful work, PoUW will be more widely adopted in the future.
Bitmart is undertaking its expansion to New Zeeland in 2023 with Thinus Venter the CTO spearheading expansion in NZD to establish a Hosting Service for PoUW machines. Due to stable internet and power and fairly well priced infrastructure cost and cool weather it makes the location ideal for PoUW hosting.
Feel free to enquire about the range of PoUW rigs available you can host in New Zeeland through Bitmart.