Cardano’s IOHK has launched a new technology on the blockchain – the Ofelimos. Ofelimos is a novel Proof of Useful Work (PoUW) consensus mechanism that aims at optimizing the Proof of Work (PoW) model without suppressing its security.
The research was triggered by IOHK, a blockchain research company founded by Charles Hoskinson and associated with the Cardano network.
Notably, the proof of work model which Bitcoin uses has long been in existence and is deemed the most secure consensus mechanism. However, this model of validation consumes excessive energy.
The high volume of computational power required to validate transactions and mine Bitcoin has also had a negative impact on green life in our ecosystem. The Cambridge Bitcoin Electricity Consumption Index reveals that Bitcoin mining consumes as much power as many small and medium-sized nations globally.
While many Crypto proponents have suggested the migration of Bitcoin’s blockchain from Proof of Stake to Proof of Work, the network risks losing its high-security level. Thus, the Proof of Useful Work consensus mechanism proposed by Cardano’s IOHK may just be the solution for Bitcoin.
Cardano’s IOG Ofelimos PoUW Model
The Proof of Useful Work model is designed to repurpose computational energy for real-world problems. This prevents dilution of security in the network, and decentralization is maintained.
Miners collectively run a double parallel local search (DPLS) which is a powerful algorithm that helps solve complex mathematical problems.
Commenting on the model of this technology, a spokesperson from the IOHK research institute stated:
“Our key technique for protocol design is to mold the whole blockchain protocol execution into a DPLS engine that demonstrably performs the steps of the algorithm in a publicly verifiable manner.”
Just like the PoW consensus mechanism, miners on the protocol are also incentivized. Notably, though, the PoUW model permits problem setters to continually fund a DPLS whenever it starts running out of funds.
If the goals of this model are tested and proven to work, in the coming months, Bitcoin, Dogecoin, and other Proof-of-work based blockchains may well adopt the Proof-of-useful-work consensus mechanism.
