Laisha Wadhwa | OpenToWork Profile picture
Aug 21, 2022 17 tweets 5 min read Read on X
Hola folks 👋

Its Day 24 of #web3glossary 🚀🚀

Consensus mechanisms ensure that all the txns on the network are genuine & all participants agree on a consensus on the status of the ledger. PoS and PoW are the most commonly known.

Today we look at PoA, PoB, PoC and PoH

Need some background on consensus algos? Check out this thread on PoS vs PoW
Both PoS and PoW have their fair share of pros and cons, let's look at how other cosensus algos differ

PoA: Proof of Activity (not authority)
To verify participants blocks, it combines its tokens to allow both mining and staking. The blocks themselves do not contain transactions
They’re empty templates embedded with txn title & block reward address
The information in the txn header is used to randomly select a validator node to sign the block & confirm it to the blockchain ledger, and only token holders are eligible to be validators
Then, the network.. fee is split between the miners & validators involved in processing & signing the block.

Helps reduce the probability of a 51% attack as its structure makes it practically impossible to predict which validators will sign a block at each future iteration.
Significant energy is still required to mine blocks during the PoW phase of this algo, & large token holders still have a disproportionately high signing chance.

👉Used by @decredproject & @EspersCoin
PoB: Proof of Burn
Miners intentionally and permanently destroy tokens in order to obtain a proportional right to mine new blocks and verify transactions it does

The more tokens a miner burns, the higher the chance that the miner will be selected as the next block validator👀
👉Less power and energy consumption
👉Motivates miners to make regular transactions using cryptocurrency
👉More sustainable & doesn’t need hardware for heavy computation
Not an initial consensus algorithm
Requires a number of wealthy participants to burn their coins in the network

👉Used by @slmcoin & @factom
PoC: Proof of Contribution
It recognizes the contributions of all active nodes within a network during each consensus round
It relies on proprietary algorithms to track it and then grants the nodes with the highest contribution value, the right to create the next block
Within a PoC consensus mechanism, users wishing to perform an on-chain calculation must give a security deposit before doing so
Each user’s contribution level is a function of that user’s track record & stake as well as the accuracy of the calculated result for any given action
👉Provides an energy-efficient cryptocurrency method
👉Minimizes mining energy usage by rewarding the complexity of solving a cryptographic challenge

@buzzshownetwork uses PoC to reward its users for every action on the platform from watching, sharing to uploading videos
PoH: proof of History

This mechanism creates historical records that prove a txn occurred at a specific moment
It’s a network-wide, permissionless source of time that operates before consensus
PoH is not a consensus mechanism but a cryptographical solution to track time by creating timestamps in a blockchain network

👉Near-zero fees and speedy transactions: Lower prices and faster transactions make the blockchain favorable for large transactions
👉Ensures efficient delivery and reassembly of all relevant transaction data without the need to wait for sequential block confirmations across the entire network

Used by @solana which is able to achieve extremely fast confirmation times without sacrificing security and still..
...maintaining a relative degree of decentralization. It uses both PoS and PoH, PoS lets participants stake their coins, while PoH ensures leaders of slots confirm transactions following the correct order.
That’s a wrap for Day 24!

I’ll be sharing information on the new vocabulary of the web for 30 days.

It’s like a free crash course on the terms and methodolgies in Web3.

📌Follow me @laishawadhwa for more such web3 gyaan!
📌RT the first tweet to share with more folks.

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More from @laishawadhwa

Sep 22, 2022
Whether its a brand fight b/w Pepsi & Coca Cola or Nike launching a new shoe collection, brands spend millions of $$ on marketing to win the battle. For brands to hold a prominent position in the eyes of their targeted audience, strategising is vital

Let me ask you question👇👇
How much does an Umbrella cost?
10$ - 12$ maybe

What's the function of an umbrella?
📌To Keep you dry when its raining

There’s a brand called Pasotti, whos’ umbrellas cost anywhere between 250$ - 800$
Obviously a more sturdy, luxurious umbrella, even opening it sounds good💯 Luxurious umbrella worth 375$
But, why would someone pay 500$ for an umbrella when the function is the same?🤔

When people are buying quality, they’re expecting something different. They take better care of it, and since they take better care of it, it lasts longer.
Read 5 tweets
Aug 26, 2022
Gm web3 fam!

Its finally day 26 of #web3glossary🚀
And with this, series has come to an end

Z: zk Rollups

By learning you'll teach and by teaching you’ll learn. Sharing on web3 terms & jargons for the last 1 month was a great learning experience for me and I hope for you too
Let's get to the thread now?

Having to spend $20 or more in gas fees for a single txn is not ideal if you want to complete a DeFi trade

If you've been hearing zk or zero knowledge, you're not alone. It's the next big thing in web3
With an increase in the number of Dapps, ...
there’s a need for faster processing speeds & cheaper txns.

That’s when layer 2 solutions came in.

Zk rollups are also a layer 2 scaling solution that increases throughput on Ethereum Mainnet by moving computation & state-storage off-chain

Read 14 tweets
Aug 23, 2022
Gm web3 fam!

Its Day 25 of #web3glossary

Decentralized networks can only provide 2 out of 3 benefits at any given time in terms of decentralization, security, & scalability Blockchain Trilemma

Let’s look at modular blockchains which aim at solving for scalability & flexibility
We’ll be comparing different modular blockchains today, but first

What’s modular blockchain?🧐
In monolithic blockchains such as bitcoin,Ethereum all the nodes & validators of the network are required to execute the same txns & do consensus on the chain

Modular blockchain..
..focuses on handling a select few duties (consensus, execution, Data availability & settlement) & outsourcing the rest to one or more separate layers

It’s just like separating a system into distinct components that can be combined in various ways to achieve specific objectives
Read 13 tweets
Aug 20, 2022
Gm Gm Web3 fam!

Its Day 23 of #web3glossary

W: WWW,Wrapped token,wei
Do you remember the first time you heard about Blockchain? Maybe you took it as a new technology that would change everything. Maybe you just wondered if you should start investing in crypto.
👀👇 were just getting your head around the concept of a decentralized web
The truth is web3 is indeed the decentralized internet of the future🚀

#web3glossary was started as a series of twitter threads to help people understand this space better and clear the air around...
.. the terms & jargons we hear around. We are almost at the end of the series and I would like to hear from you what value you gained from it and what more would you like to see😃
Until then, let’s get to today’s thread

Let’s go back to where it all started- the world wide web👇
Read 15 tweets
Aug 18, 2022
Gm gm folks 🫡

Its day 22 of #web3glossary 🚀🚀

V: Validators

Validators of blockchain technology aren't only its sower but its rewards reaper too. Let's get to the depth of it🧐

But first, here's some humor to start with
👇👇 Image
What are crypto validators and how do they work?
Crypto validators = Payment processors of the decentralized networks.
Technically, a crypto validator is a participant in a blockchain responsible for verifying txns.
After verifying the legitimacy of the txn, the validator adds.. to the distributed ledger.

Seems like the job of a blockchain validator is not that difficult!
You receive some data, check its accuracy, and validate it or not.
However, on a distributed ledger, it's easier said than done👀👀
Read 15 tweets
Aug 17, 2022
Gm Web3 fam!

Its day 21 of #web3glossary 🚀

Today’s all about the UX in the web3 space

Grab your coffee, coz it's a slightly longer thread today 😅
Web 3 is redefining how we communicate and share information. While developers are busy building the infrastructure of web3, the
user experience of most dApps has taken a back seat.
With over 4.95 billion, daily active online users spending a fair share of their day on the web, most people have not heard of of dApps or the blockchain technology that powers them.

A small percentage of those who have, often find it difficult and complex to use.

Read 22 tweets

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