What is Proof-of-Space?

Small introduction to a new technology of cryptocurrecny minning
21 September 2017   3376

The creator of the BitTorrent protocol Bram Cohen published a new concept of mining called Proof-of-Space. The new method is an environmentally friendly alternative to the energy-intensive Proof-of-Work method, which is used in the Bitcoin network. 

The document "Beyond Hellman's Time-Memory Trade-Offs with Applications to Proofs of Space" describes the process of mining using the computer's disk space, rather than its computing power.

With this approach, the probability of mining a block is proportional to the sum of the allocated space divided by the total network capacity. This method, according to the authors, will be more environmentally friendly than Proof of Work, and more profitable.

At the moment, however, it remains unclear whether this concept will form the basis of any new digital currency. In April, Bram Cohen announced the creation of a new cryptocurrency, based on the Proof-of-Capacity algorithm, which is also based on the principle of using free disk space. Since then, nothing has been heard about the project, however.

Proofs of space (PoS) were suggested as more ecological and economical alternative to proofs of work, which are currently used in blockchain designs like Bitcoin. The existing PoS are based on rather sophisticated graph pebbling lower bounds. Much simpler and in several aspects more efficient schemes based on inverting random functions have been suggested, but they don’t give meaningful security guarantees due to existing time-memory trade-offs.
 

Official whitepaper

You can learn more in the whitepaper

SEC to Accuse Veritaseum ICO of Fraud

SEC believes that project's tokensale, thru which it raised $14.8M back in 2017-2018 had a signs of scam and company misled the investors
14 August 2019   346

The U.S. Securities and Exchange Commission (SEC) has sued New Yorker  and Veritaseum-related companies that have been caught by the agency in conducting an unregistered ICO with signs of fraud. It is reported by Cointelegraph.

According to documents published on the network, the SEC intends to hold Reggie Middleton accountable and immediately freeze the assets of Veritaseum Inc. and Veritaseum LLC.

The Commission claims that the defendants raised about $ 14.8 million through an initial coin offering (ICO) in 2017 - early 2018. At the same time, many investors were misled, as the company distorted information about the conditions of the token sale and deliberately hid some significant details.

The American regulator claims that the project still has about $ 8 million of illegally raised funds. According to the SEC, these assets must be frozen immediately.

Amid this news, the Veritaseum (VERI) rate has fallen by 70%. Now the coin is trading near the $ 5 mark, although at the beginning of 2018 its rate was approaching $ 500.

Veritaseum was created as a financial p2p platform, involving the movement of capital without traditional intermediaries. Also, VERI was positioned as a utility token for use in consulting services and access to various research works.

In 2017, Veritaseum blockchain startup fell victim to hackers, having lost $ 8.4 million from ICO investors.