The HELO™ blockchain is powered by the Proof of Ethic™ consensus algorithm. Proof of Ethic™ has virtually zero carbon footprint and transaction fees. The algorithm is based on the principle of equality, so all nodes have an equal opportunity to forge the next block without the need of capital investment. This results in an accessible and egalitarian consensus.
What is a consensus algorithm?
A central administrator has the power to manage and update any centralized system, such as a database. Any updates are managed by a central authority that is responsible for keeping accurate data. Decentralized, self-regulating public blockchains function on a global scale without relying on a single authority. They include contributions from people that work on the blockchain’s verification and validation of transactions, as well as block mining.
Considering the blockchain’s constantly changing state, these publicly shared ledgers need an efficient, trustworthy, and secure method to verify that all transactions on the network are authentic and all participants agree on the ledger’s status. The consensus algorithm, or mechanism, is a system of rules that determines the legality of contributions made by the different participants (i.e., nodes or transactors) of the blockchain, performs this crucial role.
Types of Consensus Algorithms
There are a variety of consensus algorithms, each of which operates on a distinct set of principles. The two most well-known consensus algorithms currently are Proof of Work and Proof of Stake.
Proof of Work (PoW) is a widely used consensus algorithm in cryptocurrency networks such as Bitcoin and Ethereum. It requires a participating node to prove that the work they have completed and gave qualifies them to add new transactions to the blockchain however, the whole bitcoin mining mechanism consumes an abundance of energy and takes a long time to process.
Proof of Stake (PoS) is a popular consensus technique that originated as a low-cost, low-energy alternative to the Proof of Work (PoW) process. It entails assigning a participant node responsibility for keeping the public ledger in proportion to the quantity of virtual currency tokens it holds. However, this consensus algorithm has several disadvantages. To start with, it has the disadvantage of encouraging holding coins rather than transacting with them.
Proof of Ethic™ (PoE)
Bitcoin and Ethereum, among other top protocols, often experience network congestion, spikes in network fees, or halts. Proof of Ethic™, being essentially a game of speed, incentivizes nodes to generate blocks as fast as possible, while incorporating a dynamic block size to prevent bottleneck congestion.
Dynamic block sizes, exclusive to and made possible by Proof of Ethic™, enable transactions to be processed as efficiently as possible, rather than waiting for a predetermined time or block size. A block is generated in correlation to the network activity for seamless throughput. Existing models show Proof of Ethic™ achieving sever al million transactions per second.
The HELO™ Blockchain’s Proof of Ethic™ algorithm overcomes the environmental shortcomings of other blockchain consensus algorithms without any major compromise. The blockchain industry historically required massive amounts of energy and computational power, which has prevented mainstream adoption as consumers seek greener alternatives.