Update Proof of Time

Proof-of-Time.md

@@ -13,7 +13,7 @@ Most proofing algorithms fall into one of a few categories.
 
 Proof of Work (PoW) using GPUs was the first widely adopted method of computational work used in blockchain consensus mechanisms. In this system, miners attempt to create a valid block by constructing a block header, which contains several components, including a critical value known as the nonce. The nonce is simply a number that is repeatedly adjusted, typically incremented starting from zero, in an effort to discover a valid block. Each time the nonce is modified, the miner hashes the block header (which includes the nonce and other information such as the timestamp and previous block hash) and checks the result against the current target difficulty.
 
-The target difficulty is a predetermined threshold value that determines how hard it is to mine a new block. A valid block is found when the hash output of the block header is numerically lower than the target value. If the hash meets this condition, the block is considered valid, and the miner is rewarded for their work by adding the new block to the blockchain. This process is called "proof of work" because other participants in the network can independently verify the validity of the block by performing the same hash operation and checking if the resulting hash is indeed below the target difficulty.
+The target difficulty is a predetermined threshold value that determines how hard it is to mine a new block. A valid block is found when the hash output of the block header is numerically lower than the target value. If the hash meets this condition, the block is considered valid, and the miner is rewarded for their work by adding the new block to the blockchain. This process is called ***proof of work*** because other participants in the network can independently verify the validity of the block by performing the same hash operation and checking if the resulting hash is indeed below the target difficulty.
 
 GPUs (Graphics Processing Units) became the preferred hardware for PoW mining due to their ability to perform highly parallel computations at much higher rates than traditional CPUs (Central Processing Units). The core advantage of GPUs lies in their architecture, which is optimized for performing many simultaneous operations, making them ideal for the repetitive, independent hashing tasks required in mining. A GPU can test thousands or even millions of different nonce values per second, recalculating the hash for each attempt and checking whether it satisfies the difficulty target. This ability to compute and check hash results at such high speeds makes GPUs far more efficient than CPUs for PoW mining.
 
@@ -33,7 +33,7 @@ RandomX has an inverse effect compared to traditional PoW algorithms. While trad
 
 ### Proof of Stake
 
-Proof of Stake (PoS) differs fundamentally from Proof of Work (PoW) in how network consensus is achieved. In PoS, validators are selected to propose and validate new blocks based on the amount of cryptocurrency they "stake,". This means they lock up a certain number of tokens as collateral. A key challenge in PoS systems arises at the very beginning, as there are no pre-existing tokens to stake when the blockchain launches. Early PoS networks often use a form of "pre-mining" or a genesis distribution where tokens created and distributed to participants, such as developers, marketers, early adopters, or via an Initial Coin Offering (ICO). These early stakeholders then provide the necessary security for the network by staking their tokens and becoming validators. For this reason, many considered PoS to be Centralized from its creation.
+Proof of Stake (PoS) differs fundamentally from Proof of Work (PoW) in how network consensus is achieved. In PoS, validators are selected to propose and validate new blocks based on the amount of cryptocurrency they ***stake***. This means they lock up a certain number of tokens as collateral. A key challenge in PoS systems arises at the very beginning, as there are no pre-existing tokens to stake when the blockchain launches. Early PoS networks often use a form of ***pre-mining*** or a genesis distribution where tokens created and distributed to participants, such as developers, marketers, early adopters, or via an Initial Coin Offering (ICO). These early stakeholders then provide the necessary security for the network by staking their tokens and becoming validators. For this reason, many considered PoS to be Centralized from its creation.
 
 Once staking begins, PoS systems rely on a random selection process to determine which validators are chosen to propose and validate blocks. To ensure this process is fair and secure, most PoS algorithms use Verifiable Random Functions (VRFs). A VRF is a cryptographic tool that generates random numbers in a way that can be publicly verified. The randomness ensures that validators are selected in an unpredictable but fair manner, based on the amount they have staked. Validators with larger stakes have a higher probability of being chosen, but the use of VRFs prevents any single validator or group from dominating the process and ensures that even smaller stakes have a chance to participate in block production.
 
@@ -41,7 +41,7 @@ The role of VRFs in PoS is critical for maintaining trust in the fairness of the
 
 ### Proof of Authority
 
-Proof of Authority (PoA) is a type of proofing that is very different from both PoW and PoS. It relies on a limited number of pre-approved validators to maintain the integrity of a blockchain. In PoA, these "authorities" are known entities that are trusted to validate transactions and create new blocks. This trust is established through reputation and identity verification, ensuring that the validators are accountable for their actions. The centralized nature of PoA makes it particularly well-suited for private blockchains where stakeholders often require a higher level of trust and oversight compared to public networks.
+Proof of Authority (PoA) is a type of proofing that is very different from both PoW and PoS. It relies on a limited number of pre-approved validators to maintain the integrity of a blockchain. In PoA, these ***authorities*** are known entities that are trusted to validate transactions and create new blocks. This trust is established through reputation and identity verification, ensuring that the validators are accountable for their actions. The centralized nature of PoA makes it particularly well-suited for private blockchains where stakeholders often require a higher level of trust and oversight compared to public networks.
 
 One of the primary strengths of PoA lies in its efficiency and speed. Becaue validators are limited and predetermined, the consensus process is generally faster than in PoW and PoS systems, where numerous participants are involved in the mining or validation process. With fewer nodes involved, the time taken to reach consensus is significantly reduced, allowing for higher transaction throughput and lower latency. This makes PoA attractive for applications that demand quick finality and scalability.
 
@@ -51,7 +51,7 @@ Equally whereas PoA can achieve high levels of efficiency, it sacrifices transpa
 
 ### Proof of Capacity
 
-Proof of Capacity (PoC), originally developed by Burst Coin, represents a unique approach to blockchain consensus. In PoC, miners utilize available hard drive space instead of computational power to create a "grid of plots." These plots store precomputed data that enables miners to efficiently produce blocks when their particular plot is selected for a given round of mining. This method is designed to be more energy-efficient compared to traditional Proof of Work (PoW), where miners expend significant computational resources to solve complex cryptographic puzzles. By shifting the focus from processing power to storage capacity, PoC aims to democratize mining and reduce the environmental impact often associated with blockchain technology.
+Proof of Capacity (PoC), originally developed by Burst Coin, represents a unique approach to blockchain consensus. In PoC, miners utilize available hard drive space instead of computational power to create a ***grid of plots***. These plots store precomputed data that enables miners to efficiently produce blocks when their particular plot is selected for a given round of mining. This method is designed to be more energy-efficient compared to traditional Proof of Work (PoW), where miners expend significant computational resources to solve complex cryptographic puzzles. By shifting the focus from processing power to storage capacity, PoC aims to democratize mining and reduce the environmental impact often associated with blockchain technology.
 
 Despite its innovative approach, Proof of Capacity is not without drawbacks. One significant problem is the centralization among miners who can afford to purchase large amounts of hard drive space. In practice, this means that those with financial resources dominate the network by acquiring multiple petabytes of storage, increasing their chances of being selected to mine blocks and earn rewards. As a result, a more equitable distribution of mining power where a small number of participants control a disproportionately large share of the network's capacity ends up happening. This centralization poses risks to the security and integrity of the blockchain, as a small number of miners have the power to influence decisions and manipulate the system.
 
@@ -77,7 +77,7 @@ In cases where the initial cost of entry was substantial, the resulting ecosyste
 
 Proof of Time (PoT) is an innovative consensus algorithm developed specifically for the Contractless blockchain, designed to address the challenges associated with existing consensus mechanisms. By incorporating elements from various algorithms while considering their shortcomings, PoT establishes a fair framework for all participants, regardless of the hardware they utilize or the financial resources at their disposal. This inclusivity ensures that whether participants employ CPUs, GPUs, or ASICs, no single entity holds an unfair advantage, thereby keeping the cost of entry low and preventing centralization as the network evolves.
 
-The term "Proof of Time" may be somewhat misleading, as the algorithm does not directly prove time itself. Instead, it utilizes a timestamping mechanism in which the creation time of newly mined blocks serves as the primary criterion for nodes to determine the order of block generation. This approach allows for the effective identification of orphan chains and establishes which chain is considered valid, enhancing the overall reliability and integrity of the blockchain network. Through this method, PoT fosters a more equitable environment for all participants, contributing to a decentralized and resilient blockchain ecosystem.
+The term ***Proof of Time*** may be somewhat misleading, as the algorithm does not directly prove time itself. Instead, it utilizes a timestamping mechanism in which the creation time of newly mined blocks serves as the primary criterion for nodes to determine the order of block generation. This approach allows for the effective identification of orphan chains and establishes which chain is considered valid, enhancing the overall reliability and integrity of the blockchain network. Through this method, PoT fosters a more equitable environment for all participants, contributing to a decentralized and resilient blockchain ecosystem.
 
 Proof of Time synthesizes elements from both Proof of Work and Proof of Stake, incorporating concepts from RandomX to enhance the distribution of mining activities. In this algorithm, miners are required to hash a block header, which includes a nonce, akin to traditional PoW systems. However, unlike conventional PoW mechanisms, the nonce in PoT is constrained to a single byte, allowing it to assume values from 0 to 255. This restriction means that no miner, regardless of the computational power at their disposal, can perform more than 256 hash attempts within a second. Additionally, miners must embed their wallet address within the block header, ensuring accountability and traceability for each mining operation.