What is Proof-of-Space?

Small introduction to a new technology of cryptocurrecny minning
21 September 2017   2111

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

'Kodak Miner' Turned Out to be a Scam

KashMiner by Spotlite USA was promoted as Kodak branded bitcoin miner 
17 July 2018   137

The KashMiner bitcoin miner, exhibited at the Kodak stand during the CES technology show in Las Vegas, was in fact a product designed to mislead potential consumers and with a potentially unattainable potential return. This is reported by BBC.

Spotlite USA is licensed by Kodak's lighting division, which allows it to use the famous brand in its products. In January 2018 the company introduced its miner and announced that it intends to lease it. According to its business plan, potential users had to pay a commission before getting the device. It was expected that after depositing $ 3,400, the customer will receive a device that will allow him to easily cover expenses and receive revenue from bitcoin mining.

However the company did not have an official Kodak license to use the brand in the production of mining equipment and initially overstated the indicators of the potential profit of its device, refusing to take into account the growing complexity and costs of bitcoin mining. The advertising materials reported that KashMiner brings $ 375 a month, which, subject to a 2-year contract, would allow the client to receive $ 5,600 of profit after paying a commission. Experts from the industry of cryptocurrency call this offer a scam.

There is no way your magical Kodak miner will make the same $375 every month.
 

Saifedean Ammous

Economist

CEO Spotlite USA Halston Mikail previously reported that he plans to install hundreds of miners at the headquarters of Kodak. According to him, he already managed to place 80 miners there, but the Kodak spokesman denied this information.

While you saw units at CES from our licensee Spotlite, the KashMiner is not a Kodak brand licensed product. Units were not installed at our headquarters.
 

Kodak Spokesman

In a phone call with the BBC, Spotlite's Halston Mikail said the US Securities and Exchange Commission (SEC) had prevented the scheme from going ahead.