Exploring Proof Of Engagement (PoE)
Proof of engagement is a concept that has been proposed as an alternative to traditional proof-of-work (PoW) and proof-of-stake (PoS) consensus mechanisms used by many blockchain networks. The idea behind proof of engagement is to incentivize users to actively participate in the network by rewarding them for their contributions, rather than simply rewarding them for contributing computing power (as in PoW) or holding a large amount of tokens (as in PoS).
One way that proof of engagement could be implemented is by rewarding users for performing useful work on the network, such as validating transactions, participating in governance decisions, or contributing to the development of the network. This could involve the creation of a new token or the use of existing tokens that are earned through participation and can be used to vote on network decisions or reward other users.
Proof of engagement has the potential to address some of the challenges associated with traditional consensus mechanisms, such as the high energy consumption of PoW and the centralization risks of PoS. However, it is still an experimental concept and has not yet been implemented on any major blockchain networks and that is why we are taking a step forward and including it in Cypher Blockchain.
How Proof of engagement consensus works?
There are a few different ways that proof of engagement consensus could be implemented, as the concept is still in the early stages of development and has not yet been widely adopted. However, one possible approach is as follows:
Users perform useful work on the network, such as validating transactions, participating in governance decisions, or contributing to the development of the network.
The network tracks each user's contributions and assigns a score or "engagement" level based on their level of participation.
Users with high engagement levels are rewarded with tokens or other incentives, such as voting on network decisions or earning additional rewards for their contributions.
The network regularly adjusts the rewards and engagement levels based on the level of participation and the value of the work being performed.
It's important to note that this is just one possible approach to implementing proof of engagement consensus, and different implementations may operate in slightly different ways. As with any consensus mechanism, it is important to carefully consider the trade-offs and potential challenges that may arise in designing and implementing a proof of engagement system.
In a blockchain network using proof of engagement consensus, transactions would be processed in a similar way to other consensus mechanisms, such as proof-of-work (PoW) or proof-of-stake (PoS).
Here is a general outline of how transactions might be processed in a proof of engagement system:
A user creates a transaction and broadcasts it to the network.
Other users on the network, referred to as "validators," receive the transaction and verify that it is valid according to the rules of the network. This may involve checking that the user has sufficient funds to complete the transaction, that the transaction follows the network's rules for formatting and structure, and that it is not a double-spend (i.e., that the user is not attempting to spend the same funds multiple times).
If the transaction is determined to be valid, it is added to a pool of unconfirmed transactions, also known as the "mempool."
Validators compete to be the first to include the transaction in a new block by performing a certain amount of work, such as solving a computational puzzle (as in PoW) or staking a certain amount of tokens (as in PoS).
The validator who successfully includes the transaction in a new block broadcasts the block to the rest of the network.
Other validators on the network verify the block and, if it is determined to be valid, add it to the blockchain.
The transaction is now considered to be confirmed and is added to the permanent record of the blockchain.
This is just one possible approach to implementing proof of engagement consensus. However, the general idea is to use the engagement levels of users as a measure of their contributions to the network and to reward them accordingly.
How Proof of engagement is better than PoW and PoS?
One potential advantage of proof of engagement is that it could encourage a more diverse and decentralized group of users to participate in the network, as it rewards users for their contributions rather than simply for their ability to contribute computing power or hold a large number of tokens. This could help to reduce the risk of centralization and ensure that the network is more robust and resistant to attacks.
Additionally, proof of engagement could potentially address some of the challenges associated with traditional consensus mechanisms, such as the high energy consumption of PoW and the potential for wealth inequality and centralization in PoS.
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