Understanding Delayed Proof of Work (dPoW)
Proof of Work and Proof of Stake
PoW blockchains require significant computational power and are susceptible to 51% of attacks, where malicious actors gain control over most mining power.
Proof of Stake (PoS) is another consensus mechanism where validators stake capital as an incentive to act in the network’s best interest.
PoS networks are more energy-efficient and secure compared to PoW, as validators risk losing their staked capital if they behave maliciously or inefficiently.
The Importance of Hashpower
Smaller blockchain networks often struggle to achieve a high level of security due to their lower hash power.
dPoW addresses this issue by utilizing the hash power of a larger, external blockchain, such as Litecoin, to enhance the security of the primary blockchain.
dPoW employs notary nodes to add data from the primary blockchain onto the secondary blockchain, leveraging its security.
These notarized blocks backed up on multiple blockchain networks, ensure the transaction history’s immutability and guarantee data authenticity and integrity.
Furthermore, the flexibility of notary nodes allows for the switching of notarization to another PoW network if the hash power or cost of notarization changes, ensuring adaptability and superior security compared to other networks.
The Difference Between dPoW and Other Mechanisms
dPoW does not rely on a consensus algorithm like PoW or PoS but instead prevents notarized blocks from being reorganized. It disregards the “longest chain rule” used in PoW chains, where the chain with the most blocks added is considered the most valid.
dPoW networks refer to the latest backups notarized on the chosen PoW blockchain and do not accept longer chains starting from a previous point.
This approach ensures the agreement on the same transaction history among network nodes.
Advantages of dPoW
The dPoW security mechanism allows frequent backups on the leveraged PoW network, ensuring easy data recovery during a system failure or hacking.
An attacker must infiltrate and destroy all backups on the leveraged blockchain and the dPoW network to compromise the system.
In the case of a compromised third-party smart chain employing dPoW, the entire ecosystem would require destroying all copies of the smart chain, the main dPoW network, and the chosen PoW network.
This added security comes with lower financial and environmental costs.
dPoW enables blockchains to utilize the security of a secondary blockchain, making it particularly valuable for newly formed blockchains with low hash rates.