# Introduction Despite its widespread use, PoW still has several criticised problems, and one of the most serious is its energy consumption. The reason for such a disappointing situation is that under PoW, network nodes need to run an algorithm we call SHA256 repeatedly until they successfully find the hash solution; then, they will be rewarded by many digital assets/currencies; this process completely depends on the computing power of the devices with high-end GPU’s and thus mining rigs are used. Another problem is the more centralised computing power. To increase the chances of getting a reward, the users either have to buy more powerful computing devices with expensive GPUs and keep them running at full capacity and consume electricity round the clock or join some huge available mining pools, which causes a shift in the computing power from decentralized back to centralized and greatly threatens the security of the blockchain network. Proof of stake (PoS) was originally designed to solve the energy consumption problem created by Proof of work (PoW). Under PoS, the probability of getting a reward is affected not only by the computing power but also by the length of time a node holds the coins (coinage) also known as staking or freezing of digital assets. Thus, to some extent, we can say that PoE reduces energy consumption and weakens the absolute control/power of the full-time miners and mining pools over the blockchain network. However, this easily leads to the Matthew Effect, the block producers with more stakes always gain more profits than those who have less amount of staking power. Unfortunately, it will be hard for new users to gain their profits under PoS, and the discourse power will gradually be centralized in the hands of a few rich ones. The centralization problem is still not effectively solved; this reduces the incentive of the whole system. To increase the incentive of the system and reduce the negative effect of ME, in the following document we propose a new consensus mechanism named proof of engagement (PoE). A blockchain system under PoE is more like a work-based society, where nodes can accumulate their profits by contributing computing power to maintain security and creating high-quality smart contracts to maintain autonomy. In this way, new nodes in the [cypher blockchain](https://cypherchain.org) will be able to gain a voice more easily; the flexibility of the whole system is also increased. [Reference and credits here](https://www.hindawi.com/journals/wcmc/2021/6185910/) --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://support-168.gitbook.io/cypher-blockchain-whitepaper-v1.0/introduction.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.