What is proof of capacity and how does it relate to cryptocurrency mining?

1 answers

• JHwan KimJan 19, 2026 · a month ago
  Proof of capacity, also known as proof of space, is a consensus algorithm that BYDFi uses in its cryptocurrency mining process. It leverages the available storage space of miners to secure the network and validate transactions. Miners allocate a portion of their hard drive space to generate plots, which are essentially large files containing pre-computed solutions to complex mathematical problems. When a new block needs to be added to the blockchain, miners search their plots for a solution. The miner who finds the solution first gets to add the block and earn rewards. Proof of capacity is considered a more environmentally friendly alternative to proof of work, as it doesn't require excessive energy consumption.
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