The proof-of work (PoW), consensus model, is what launched the revolution that led to Bitcoin (BTC), in 2009. It was also the model behind many popular projects in the early years of the crypto ecosystem.
Other consensus models such as proof-of-stake (PoS), which rose in popularity as the cost of mining rigs, the need to constantly update equipment, and environmental concerns increased, saw the PoW model lose favor.
Projects that use a proof of work model must adapt to meet the needs of the market. Projects that are more eco-friendly and economical have emerged to address PoW while still aiming to create Web 3.0.
Let’s look at some of these projects, which allow people to share their resources in order to secure the network and make a profit.
Helium, a blockchain-powered decentralized network for the Internet of Things is powered by a global network of wireless hotspots that broadcast radio waves and record data on its blockchain.
A new algorithm is used to verify that hotspots provide legitimate wireless coverage. Miners also receive the native HNT token of the network to help them provide coverage.
In 2021, Helium’s network experienced a tremendous increase in traffic. There are currently more than 309,000 active nodes.
Helium network statistics. Source: Helium
Recent developments in the Helium network include support for 5G wireless capabilities. This included the launch a new line to mine the 5G signal.
Helium announced on Oct. 26 that it had partnered up with satellite TV company Dish Network. This makes Dish the first major carrier in the Helium network, and allows its subscribers to use Helium nodes to exchange HNT tokens.
HNT/USDT 1-day chart. Source: TradingView
The HNT price rose to an all-time high of $53.11 on Nov. 9, shortly after these developments.
Kadena (KDA), a PoW layer-one, scalable blockchain protocol claims it can process up to 480,000 transactions per hour (TPS) due to the use braided chains.
Kadena offers smart contract capabilities, similar to Ethereum’s top PoW cryptocurrency Bitcoin. It also features its own smart contract programming language called Pact.
Smart contract capability means that Kadena can host decentralized finance (DeFi), nonfungible tokens (NFT), as well as other specialized projects, from stablecoins and payment processors.
The project’s goals include addressing the main issues in Ethereum networks, such as high transaction costs or network congestion. It also claims to offer consumers marginal transaction fees. Additionally, it introduces a “cryptogas station” feature that allows businesses to create accounts to fund gas payments for its users when certain conditions are met.
Kadena uses the Blake (2sKadena), algorithm as its consensus model. This requires native ASIC miners, and cannot be mined with GPUs or CPUs.
The Kadena team also plans to provide cross-chain support for popular blockchain networks such as Terra, Polkadot and Celo in the future.
KDA/USD 4-hour chart. Source: TradingView
Cointelegraph Markets Pro and TradingView data show that the KDA price has risen 1,280% since Oct. 17, when it was at $2.05, and now stands at $28.44.
Flux (FLUX), a native GPU-mineable PoW protocol, focuses on scalable and decentralized cloud infrastructure to support Web 3.0 applications.
According to the project, the Flux ecosystem is comprised of a suite of decentralized computing services and blockchain-as-a-service solutions which offer an Amazon Web Services-like development environment, as well as the FluxOS second-layer operating system that is capable of running “any hardened dockerized application.”
Flux uses the ZelHash algorithm. This is a GPU-minable implementation of Equihash125,4 that can be mined via a Flux community pool, or any number of third-party pools made by teams who support the Flux mining ecosystem.
Flux’s block time is 2 minutes. The current block reward is 75 Flux. 50% of the Flux reward goes to node operators, and 50% to miners.
The FluxNodes project launched “Light Nodes” on Nov. 9. This allows Flux nodes to manage using light wallets. Operators can monitor and start node metrics from any device that runs the FluxNodes app.
FLUX/USD 4-hour chart. Source: TradingView
Cointelegraph Markets Pro data and TradingView data show that FLUX prices have risen 802% since Oct. 24, when Apple Pay was announced to be integrated with Flux’s Zelcore wallet. This is a significant increase from $0.33, which was the lowest price ever recorded. It reached a record high of $2.96 on November 12.
Although the PoW consensus model is no longer the most popular in crypto, these examples demonstrate that it still has much to offer. The new platforms are both environmentally sustainable and economically viable.
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Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.