Distributed Proof of Capacity (DPoC) is a consensus mechanism used in some cryptocurrencies to verify transactions and secure the network. In DPoC, instead of using computational power like in Proof of Work (PoW), users prove their stake in the network by allocating and ‘plotting’ a certain amount of hard drive space. This process involves pre-generating a large number of cryptographic ‘plots’ which contain potential solutions to cryptographic puzzles.
When a new block needs to be added to the blockchain, the network selects a plot at random, and the user associated with that plot can then ‘mine’ the block. By having a plot in storage, users are eligible to mine a block based on the amount of space they’ve allocated. This way, DPoC allows for a more energy-efficient way of reaching consensus without the need for massive computational resources.
Overall, Distributed Proof of Capacity leverages storage space rather than computational power to provide a secure and decentralized way of reaching consensus in a cryptocurrency network.
