Peering exchange has a built-in Proof of Work with validation that reduces blockchain gas prices by being predictable for its clients and can be used to secure many use cases, this post will attempt to explain what that means for security and data and also point out the innovative advantages over current developments in the blockchain world.
Our Proof-of-work (PoW) uses a unique algorithm that secures our (light ~20kb) embedded self-signed certificate client.
Most digital currencies have a central entity or leader keeping track of every user and how much money they have. But there’s no such leader in charge of securing data like PXCGhost; Proof-of-work is needed to make the data independent of an intermediary, company or government running the show.
More specifically proof-of-work solves the “3rd party and double-checking problem,” which is trickier to solve without our exchange scanning and building trusted packets to use and secure data transactions. If users can double-send their transactions, this leads to the potential for corrupt or lost data.
Double-spending is an issue for online transactions because digital actions are very easy to replicate, which is what makes it trivial to copy and paste a file or send an email to more than one person.
Proof-of-work makes replicating or reproducing security blocks post-quantum-proof and very, very hard to create a denial of service. It’s much what it sounds like “proof” that the exchange has executed a safe and significant amount of computations to predict safe hash headers touse across the networks the Peering Exchange interacts with.
How PoW (Proof Of Work) works
PXCGhost is a blockchain tech, which is a shared ledger that contains a history of every secure transaction that ever took place. This algorithm is composed of blocks. Each block has the most recent transactions stored in it before it builds the certificates for connectivity, it is in essence building checks at each layer of the OSI when combined with our DNA inventory tech.
Proof-of-work is a necessary part of adding new safe blocks to the exchange. Blocks are summoned to life by our miners, the players in the ecosystem who execute proof-of-work. A new block is accepted by the network each time a miner comes up with a new winning proof-of-work, which happens roughly every 2 minutes.
Finding the winning proof-of-work on blockchain is so difficult the only way to provide the work miners need to win bitcoin is with expensive, specialised computers. Our exchange Miners does all the hard work with more power and a lower energy footprint in the world, builds trusted blocks if they create a matching computation. The more computations the exchange churns out, the more certificates and secure connections it creates.
What computations are the miners making exactly?
In PXCGhost, the cores spit out so-called “hash,” which turns an input into a random-looking string of letters and numbers.
The goal of the exchange miners is to create a hash matching our current “target.” They must create a hash with enough zeroes in front. The probability of getting several zeros in a row is very low. But miners across the world are making trillions of such computations a second, so it takes them about 10 minutes on average to hit this target, we identify good headers and reduce this to sub 1 minute.
When the exchange reaches more than 51% of trusted blocks then the protocol creates a new value that miners must hash, and miners start the race for finding the winning proof-of-work all over again, this allows us to create a secure unique certificate that can be embedded to create private networks.
Why do miners follow the rules?
Miners earn bitcoin rewards for every block for which they find the solution. This is what drives them to mine in the first place.
Say Ghost1 the Miner finds a winning hash for a block. If Ghost1 submits the solution with the block but breaks rules within the block – say, generates data more than once – the rest of the exchange network will reject Ghost1’s block. Ghost1 will lose access to be trusted and loses all connectivity to the exchange. The threat of losing access keeps miners honest.
Why is proof-of-work needed?
The goal of proof-of-work is to prevent users from corrupting the hash sequences. If users were able to create the hash more than once, it would effectively make the exchange worthless.
With most certificate systems today, they produce keys which expire and are left lying around as certificate fodder, decreasing security and assisting cybercriminals. In PXCGhost exchange there isn’t such an entity. Our Proof-of-work provides a unique solution.
Who invented proof-of-work?
Bitcoin creator Satoshi Nakamoto invented proof-of-work to get Bitcoin off the ground.
What are the problems with proof-of-work?
There are at least a few problems with proof-of-work in traditional systems:
High energy use: Blockchain uses as much energy as all of Switzerland because of proof-of-work. And its energy use is increasing as more miners join.
We power our tech completely off-grid, through a turbine tech that runs our rack of exchange power, currently 6.4tbps per rack.
51% attacks: If one mining entity is able to accumulate 51% of Bitcoin’s mining hashrate, it can then flout the rules temporarily, duplicating and blocking transactions.
Only our exchange can build trust at 51% or more before a secure hash is accepted to be used, leading to a strict Data Centre security for each mining node. Also, this means that the global Internet would need to 51% or greater control to execute a denial of service that runs connectivity on our exchange.
Mining centralisation: Proof-of-work is all about creating a currency without one single entity in charge. That said, in practice the system is somewhat centralized, with just three mining pools controlling almost 50% of Bitcoin’s computational power. Developers are attempting to at least alleviate this issue.
We solved this with our exchange using its algorithm to decentralise the process and build its own proof of trust and validation prior to being allocated or being deemed as useful blocks and hashes.
Why does more mining power mean more security?
The more computational power being poured into securing Bitcoin, the more resources a potential attacker needs to amass in order to successfully attack Bitcoin.
PXCGhost adds value to that trusted and power process, we use ethereum as a standard and build trust validation across the network leading to a very secure exchange which can’t be compromised.
Which cryptocurrencies use proof-of-work?
Most cryptocurrencies use proof-of-work, though some are experimenting with other ways of securing their networks.
We are the first in the world to create that secure network to embed light clients into IOT, secure medical networks for Augmented and virtual reality transactions or securing edge processing and removing multiple layers of tech.
The most popular cryptocurrencies tapping proof-of-work include:
Ethereum (though Ethereum recently began the long process of transitioning to Ethereum 2.0, an upgrade that will shift the cryptocurrency to the potentially greener proof-of-stake instead.)
We chose ethereum to build the security and standards needed to allow PXCGhost exchange to thrive and innovate.