What Is Proof Of History (PoH)?

Proof of History (PoH), developed by Solana, is a way of embedding time into the blockchain to reduce the strain on network nodes while processing blocks. In a classic blockchain, reaching an agreement on when a block was mined is equally as crucial as reaching an agreement on the transactions in that block. Timestamping is essential because it tells the network that transactions happened in a specified sequence.

In a Proof of Work (PoW) scenario, the successful block miner is the first to find the right nonce, which requires a certain amount of computing power. Verifiable Delay Functions are used in Proof of History (PoH) (VDFs). A VDF can only be solved by one CPU core following a particular procedure. It is easy to estimate the time required for each step because parallel processing is not allowed.

Proof of History (PoH) eliminates the time barrier by decreasing the processing weight, making blockchain efficient and faster. The security technique known as Tower BFT, which enables users to stake tokens to determine if a Proof of History (PoH) hash is genuine, is combined with Proof of History (PoH) in Solana.

Benefits

Low Transaction Prices:

Solana has lower transaction fees than competing networks like Ethereum. As a result, Solana is an ideal solution for frequent purchases and money transfers.

Scalability:

The Solana network provides rapid transaction processing. As a result, the whole picture becomes more scalable.

Drawbacks

To verify the legitimacy of transactions on its network, Solana currently makes use of fewer than 1,200 validators.

Solana is frequently described as an Ethereum killer; however, the network has fewer dApps in comparison. Solana has around 350 dApps, but Ethereum has nearly 3,000 dApps.

Proof of Stake vs. Proof of History (PoS)

The concepts of Proof of Stake and Proof of History are quite identical. This is because Proof of Stake turned into Proof of History. Both algorithms are based on the same principles. Both methods employ validators to ensure that transactions are verified, and new blocks are produced.

However, there is a considerable variation in how time is estimated between these two techniques. Proof of Stake uses the timestamp function. This implies that each node is dependent on the network’s timestamp. Because time must first pass via the network, the network will run slower.

This isn’t necessary with Proof of History since it uses the Verifiable Delay Function, which estimates time based on historical events. Following the analysis of these occurrences, a hash function is created; anybody can verify that. This hash is added to every block produced by the network. Since calculating time requires so little, the Solana blockchain is already highly scalable.

Issues with Proof of History (PoH)

PoH is a consensus process similar to Proof of Stake but utilizes a different time calculation algorithm. Historical events currently determine the passage of time. These events are combined to build a hash that preceding events can only create. In no way can the hash be fabricated.

Solana is the first blockchain to use the PoH algorithm. As a result, the blockchain is highly scalable, with the ability to execute up to 60,000 transactions every second. PoH ensures that identifying the timestamp of a transaction requires as little time as possible.

Proof of History, on the other hand, is riddled with problems. For example, because this strategy has never been tested on a large scale, we wouldn’t know if it works properly. Furthermore, several weaknesses and attacks in Solana have already been uncovered, some partially triggered by PoH. As a result, we are unsure if PoH is a secure consensus mechanism.