What Is PoET (Proof of Elapsed Time)? (Cryptocurrency)
Proof of elapsed time (PoET) is a blockchain network consensus mechanism method that uses a fair lottery system to prevent high resource utilization and energy consumption while keeping the process efficient. On a blockchain network, the algorithm decides mining rights and block winners using a randomly generated elapsed time. The PoET algorithm improves transparency by ensuring lottery results are verifiable by external participants by running a trustworthy code in a safe environment.
Understanding Elapsed Time Proof (PoET)
Proof of elapsed time (PoET) is a consensus process that is frequently used on permissioned blockchain networks to determine mining rights and block winners. Permissioned blockchain networks are those that require potential participants to verify their identity before being allowed to join. The PoET method is based on spreading the odds of winning equitably over the widest possible number of network members, based on the notion of a fair lottery system where every single node has an equal chance of winning.
The following is how the PoET algorithm works. Each participating node in the network must wait for a predetermined amount of time, and the first node to fulfill the waiting period wins the new block. Each node in the blockchain network produces a random wait time and sleeps for that amount of time. The first to wake up—that is, the one who has waited the least amount of time—commits a new block to the blockchain, sending the essential information to the whole peer network. The process is then repeated for the next block’s finding.
Two crucial elements must be ensured by the PoET network consensus method. To begin with, the technique assures that the participating nodes choose a time that is truly random, rather than a shorter duration picked by the participants on purpose in order to win. Second, the process ensures that the winner has completed the required waiting period.
Intel Corporation and PoET
The PoET concept was developed by Intel Corporation (INTC), a well-known chip manufacturer, in early 2016.
It provides a ready-to-use high-tech solution to the problem of “random leader election” in computers. The embedded mechanism enables applications to run trusted code in a secure environment, ensuring that both requirements—randomly determining the waiting time for all participating nodes and the winning participant actually completing the waiting period—are met.
Intel funded Hyperledger Sawtooth, which supports the PoET consensus mechanism, in collaboration with other companies such as the Linux Project and IBM. Hyperledger Sawtooth is an open-source enterprise blockchain-as-a-service platform used by Hyperledger Sawtooth, an umbrella blockchain development group. When the inventors of PoET created it, they saw its potential for usage on permissioned blockchain networks to determine mining rights or block winners. 1
The Advantages of Elapsed Time Proof (PoET)
The workflow is essentially the same as Bitcoin’s proof of work (PoW) algorithm’s consensus method, but without the excessive power consumption. Rather than being resource-intensive, it allows a miner’s processor to sleep and transition to other jobs for a set amount of time, enhancing efficiency.
Many other network requirements are met by the mechanism of running trustworthy code in a safe environment. It ensures that the trusted code executes within the secure environment and that it cannot be changed by anybody else. It also assures that the results can be verified by external participants and entities, improving the network consensus’ transparency.
PoET manages the cost of the consensus process and maintains it agile, ensuring that the cost is equal to the value gained from the process, which is essential for the cryptocurrency economy to thrive.