Three Proof-of-work protocols centered on constructing Net 3.0
The Proof-of-Work (PoW) consensus model is the mechanism that sparked the revolution that started Bitcoin (BTC) in 2009, and it was the model of choice behind many of the popular projects in the crypto ecosystem’s early years .
Over time, other consensus models like Proof-of-Stake (PoS) became increasingly popular, especially as the cost of running mining rigs, the constant need to upgrade equipment, and environmental concerns led to the PoW model for many fell out of favor.
As a result, projects that wanted to use a proof-of-work model had to adapt to meet the demands of the wider market. This has led to the emergence of projects that offer a more environmentally and business friendly approach to PoW while aiming at building Web 3.0.
Let’s take a look at some of the projects that are allowing people to contribute their resources to secure the network while generating a return.
Helium is a decentralized, blockchain-powered network for Internet of Things (IoT) devices that uses a global network of low-energy wireless “hotspots” that transmit data over radio waves to record on its blockchain.
The network uses a new working algorithm called “proof-of-coverage” to confirm that hotspots provide legitimate wireless coverage and that miners are given the platform’s native HNT token to aid in network coverage.
The helium network saw tremendous growth in 2021. There are currently more than 309,000 nodes in operation.
Helium network statistics. Source: helium
More recently, the Helium network has expanded its capabilities by adding support for 5G wireless functions, including the introduction of a new line of miners that can carry the 5G signal.
On October 26, Helium announced that it had partnered with satellite television company Dish Network, making Dish the first major carrier to join the Helium network and offer its subscribers the option to purchase Helium nodes in exchange for HNT tokens to operate.
HNT / USDT 1-day chart. Source: TradingView
Shortly after these developments, the HNT price rallied to a new all-time high of $ 53.11 on November 9th.
Kadena (KDA) is a scalable PoW layer one blockchain protocol that claims to be able to process up to 480,000 transactions per second (TPS) thanks to the use of braided chains.
In contrast to the top PoW cryptocurrency Bitcoin, Kadena also offers smart contract functions similar to those of Ethereum and has its own smart contract programming language called Pact.
Being smart contract enabled means the Kadena network is able to host decentralized financial (DeFi) and non-fungible token (NFT) protocols, as well as a variety of other specialized projects from stablecoins to payment processors.
Some of the project’s goals were to address the main issues facing the Ethereum network, such as high transaction costs and network congestion, and claims to offer consumers marginal transaction fees while introducing a “crypto gas station” feature that allows businesses to create accounts that exist to fund gas payments on behalf of its user base when certain conditions are met.
Kadena uses the Blake (2s-Kadena) algorithm as a consensus model that requires native ASIC miners and cannot be mined with GPUs or CPUs.
Recently, KDA released a packaged version of its token called wKDA that is capable of interacting with all Ethereum Virtual Machine (EVM) compatible networks and associated DeFi protocols.
In the future, the team behind Kadena also plans to add cross-chain support for other popular blockchain networks like Terra, Polkadot, Celo and Cosmos.
KDA / USD 4 hour chart. Source: TradingView
Data from Cointelegraph Markets Pro and TradingView show that the price of KDA has risen 1,280% from a low of $ 2.05 on October 17th to a new all-time high of $ 28.44 on November 11th due to recent developments.
Flux (FLUX) is a native GPU mining PoW protocol that focuses on a scalable decentralized cloud infrastructure for Web 3.0 applications.
According to the project, the Flux ecosystem is made up of a set of decentralized computing services and blockchain-as-a-service solutions that provide an Amazon Web Services-like development environment, as well as the second-tier FluxOS operating system capable of “any hardened.” Dockerized Application “.
The Flux Network uses the ZelHash algorithm, which is a GPU-minable implementation of Equihash 125.4 and can be mined through a Flux community pool or into a variety of third-party pools created by teams that run the Support the flux mining ecosystem.
The block time on the Flux network is two minutes and the current block reward is 75 Flux, with 50% going to node operators and 50% going to miners.
On November 9th, the project introduced “Light Nodes”, which allow Flux Nodes to be managed using light wallets so that operators can launch and monitor node metrics from any device that can run the FluxNodes app.
FLUX / USD 4 hour chart. Source: TradingView
Data from Cointelegraph Markets Pro and TradingView show that FLUX’s price has increased 802% from $ 0.33 to one since October 24th, when it was announced that Apple Pay would be integrated into the Flux network’s Zelcore wallet new all-time high of $ 2.96 rose November 12th
While the PoW consensus model is no longer the dominant model of large-scale projects in the crypto ecosystem, these three examples show that it still has a lot to offer as the new platforms are environmentally friendly and economically sustainable.
Would you like more information about trading and investing in crypto markets?
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading involves risk, so you should do your own research when making a decision.