Revolutionizing Blockchain Consensus: Unraveling the Power of Velas Proof of History.

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Engineering, Technology 5 min reading

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Teriano Porter

28 Feb 2024

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Time Redefined: Paradox and Potential

Einstein’s theories of general relativity propose time as a relative concept, while quantum mechanics argues for its absoluteness, leaving scientists in a conundrum. This paradoxical nature of time becomes even more critical in decentralized systems, where achieving consensus among hundreds of nodes necessitates precise and standardized time. While the accurate sequencing of transactions is paramount for the integrity of the blockchain, most traditional approaches often rely on external programs for timestamps, introducing dependencies on centralized sources that contradict the core tenets of decentralization. This results in inefficiencies and a bureaucratic layer in the code execution process, hindering the seamless functioning of blockchain networks.

Scalability and efficiency remains a persistent hurdle, with traditional methods like Proof of Work (PoW) and Proof of Stake (PoS) grappling to handle increasing transaction volumes and the ever growing nodes on the network. Velas seeks to surpass these limitations by adopting a consensus mechanism that not only addresses the scalability challenge but also enhances the efficiency of its blockchain network. Proof of History (PoH).

The Core Concept of Proof of History

Being a novel and completely innovative consensus mechanism inherited from Solana, the Proof of History algorithm serves as a revolutionary approach of handling the chronological order of events in blockchain systems. It provides a more scalable and efficient alternative to conventional timestamping approaches by streamlining transaction sequencing and enhancing the overall performance of the network. A typical example is an individual visiting a competition at the Olympic Games and taking an image of the event could prove that the photo was taken during the Olympic Games (I.e. It proves that the image was taken within a specific time). In simple words, Proof of History helps in creating a historical record of transactions that prove that a particular event takes place at a particular time. Therefore, PoH, with its emphasis on the temporal order of events, lays the foundation for a secure and transparent blockchain.

Demystifying PoH: How it Works

PoH operates by executing a sequence of computations that cryptographically verifies the passage of time between two events. It employs a cryptographic Verifiable Delay Function (VDF) to generate timestamps for each block and securely integrate them into the corresponding block, creating an immutable and verifiable record of the chronological order of transactions. This deliberate design ensures that the timestamps are delay-hard and memory-hard, presenting a formidable challenge for potential attackers attempting to manipulate the chronological order of transactions. It also significantly enhances the efficiency of transaction validation, leading to faster finality and reduced latency in the blockchain network. The key innovation is the ability to timestamp data directly into this sequence, providing an indisputable record of when the data was appended. Velas leverages this mechanism to optimize transaction processing, achieving over 50,000 transactions per second.

Advantages of Proof of History

1. Fast Finality: One of the standout advantages of PoH is its ability to facilitate fast finality. Once a block is added to the blockchain, it is marked as finalized and irreversible. This swift confirmation of transaction validity enhances the overall efficiency of the blockchain network by reducing the time required for consensus.

2. Enahanced Scalability and Efficiency: PoH is designed to significantly reduce storage and bandwidth requirements, addressing critical scalability concerns in blockchain networks. Velas, inheriting PoH from Solana, achieves remarkable transaction speeds by optimizing resource utilization. The reduction in traditional storage needs contributes to enhanced overall efficiency.

3. Security: The intentional design of the VDF as delay-hard and memory-hard adds an extra layer of security to PoH. This cryptographic approach fortifies the consensus mechanism against potential manipulation attempts. Additionally, the cryptographic timestamps provide a secure and tamper-evident record of the order of transactions, further enhancing the overall security posture.

Eventual Consistency and the Railroad Analogy

Proof of History (PoH) plays a pivotal role in achieving eventual consistency within the blockchain. The emphasis on the temporal order of events ensures that the exact instance of a transaction within the global state of the blockchain is verifiable. The Railroad Analogy aptly illustrates how PoH streamlines the verification process, likening it to the efficient verification of a well-timed train journey. In this scenario, a person sends an urgent package on a train journey from New York to Chicago, making stops at Philadelphia and Cleveland. Authenticating the train’s identity at each stop becomes crucial. This analogy emphasizes the efficiency gains achieved by Velas PoH in validating transactions within the network.

Beyond the Basics: Recent Developments and Future Potential

Velas is actively exploring advancements in PoH research. Recent developments include:

  • Stacked VDFs: This technique further enhances security by utilizing multiple VDFs, making it even more computationally expensive to manipulate timestamps.
  • Lightweight VDFs: Research is ongoing to develop lighter VDFs that maintain security while reducing resource requirements.
  • Cross-Chain Interoperability: Integrating PoH with other consensus mechanisms is being explored to facilitate communication and collaboration between different blockchains.

These advancements promise even greater scalability, security, and efficiency for blockchain networks, solidifying PoH’s position as a leading consensus mechanism.

Conclusion

In conclusion, Velas’ adoption of PoH represents a pivotal moment in the evolution of blockchain consensus mechanisms. By tackling the challenge of time in decentralized systems head-on, we ensure not only the scalability and efficiency of our network but also upholds the principles of transparency, security, and decentralization. The integration of Proof of History aligns seamlessly with Velas’ vision of solving scalability issues in blockchain systems through high throughput and lightning-fast transactions, ushering in a new era of blockchain innovation. As we witness the blockchain landscape undergo transformative changes, Velas stands at the forefront, revolutionizing the very fabric of consensus with the power of Proof of History.