January 2019
Beginner to intermediate
372 pages
11h 17m
English
Content preview from Foundations of Blockchain
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Proof of Activity (PoA)
Most cryptocurrencies and blockchain platforms that use PoW have a limited supply of tokens. For example, Bitcoin will only mint 21 million coins, and the final coin will be minted sometime during the year 2140. Miners will have to solely depend on transaction fees as their incentives when all the coins are minted. According to the current difficulty level of Bitcoin, it would reach a level when it may not be economical for miners to participate in the mining process. The existing miners may try and perform dishonest acts and spoil the blockchain system with invalid transactions for their own benefit. PoA was proposed as an alternative consensus algorithm that could be adopted by Bitcoin. It is a hybrid approach that ...
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