Crypto Terms:
Letter P
What is Proof-of-Donation?
Meaning:
Proof-of-Donation -
is the inclusion of charitable donations into the functionality of a blockchain.
Let's find out Proof-of-Donation meaning, definition in crypto, what is Proof-of-Donation, and all other detailed facts.
The incorporation of charity donations into the operation of a blockchain is known as Proof-of-Donation. Typically, this refers to the routing of cash toward a philanthropic goal, which is established by a smart contract and activated with each transaction.
The charitable donation can be given to a wallet owned by a charity or a separate fund in which funds are controlled by a DAO or other party.
For instance, Hermez Network uses Proof-of-Donation, so administrators compete for the privilege to execute transaction volumes using the HEX token. 40% of each winning bid is given to Gitcoin to finance Ethereum public goods, 30% is burnt, and another 30% is reassigned to the network.
As a result, Proof-of-Donation is a variant of the original Proof-of-Burn that focuses on bringing clarity and stability to the blockchain transfer paradigm. Since blockchain activities scale due to systematic reassignment of funds, charity gifts also scale and contribute to the network's long-term development.
Besides, since charitable contributions are frequently tax-deductible, taxpayers must provide documentation of the transaction in the shape of an official dated receipt from the recipient organization or some other legal documentation of the transaction.
Proof-of-Work (PoW)<\/strong><\/a> scenario, the successful block miner is the first to evaluate the suitable <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-nonce/">nonce. This nonce takes a received quantity of computer power. Proof-of-History (PoH) is a bit different since it is able to <strong>overcome a verifiable delay function (VDF) <\/strong>by running a particular set of chronological steps. Since no parallel processing is allowed, evaluating the time it will take for each step is easy.<\/p>\n<p><strong>PoH employs Bitcoin's <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-sha-256/">SHA-256 <strong>algorithm <\/strong>to provide a reliable time-tracking mechanism within the decentralized blockchain. SHA-256 is a variant of SHA-2, a sophisticated encryption method created by the National Security Agency (NSA).<\/p>\n<p><strong>The only blockchain that uses the Proof-of-History algorithm is Solana<\/strong>. Hence, the blockchain can process about 60,00 transactions per second, making it very scalable. It also ensures that evaluating the timing of a transaction is quicker.<\/p>\n<p><strong>The mechanism is based on Proof-of-Stake;<\/strong> however, it does have a varying technique for calculating time. To evaluate the passage of time, historical events are currently being employed. These events are made into a hash, which can only be produced by prior events. It is impossible to counterfeit the hash.<\/p>\n<p>However, Proof-of-History has some drawbacks. For instance, there were several attacks in Solana found in the past that were caused by Proof-of-History. Also, the technique was never tested on a wide scale, so there are no guarantees that it actually operates without any errors.<\/p>\n<h2>Proof-of-History (PoH) VS Proof-of-Stake (PoS)<\/h2>\n<p>There are a lot of similarities between Proof-of-Stake and Proof-of-History algorithms. This is because <strong>Proof-of-Stake was used as a base for creating Proof-of-History<\/strong>.<\/p>\n<p>In both methods, <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-validator/">validators are utilized to ensure that transactions are validated, and new blocks are created. Also, both of them are developed on the very same foundation.<\/p>\n<p>Nonetheless, there are major differences between these two algorithms. <strong>Proof-of-Stake employs the timestamp function<\/strong>. This indicates that every node depends on the network's timestamp. The network functions in a slower manner because time has to flow via the network first.<\/p>\n<p>Besides, Proof-of-Stake uses the Verifiable Delay Function, which computes the time based on previous events. Following an examination of these occurrences, a hash function is created that can be verified by anyone. This hash is added to each and every block produced by the network.<\/p>\n<p> <\/p>","definition":"a consensus mechanism that incorporates time into the blockchain.","status":"published","meta_title":"What is Proof-of-History (PoH)? Definition & Meaning | Crypto Wiki","meta_description":"Proof-of-History (PoH) meaning: Proof-of-History (PoH) - is a method of incorporating time into the blockchain.","meta_keywords":null}"
:prev-section="{"id":596,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Web_developer","level":"easy","author_id":1,"created_at":"2023-06-19T06:59:00.000000Z","updated_at":"2023-11-24T19:07:47.000000Z","slug":"what-is-proof-of-developer-pod","title":"What is Proof-of-Developer (PoD)?","section":"P","keyword":"Proof-of-Developer (PoD)","content":"<p><strong>Proof-of-Developer (PoD)<\/strong> is a type of proof that identifies a living <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-cryptocurrency/">cryptocurrency software developer. It prevents fraudsters from acquiring control over projects (particularly their funding) without providing finished products to investors. Usually, cryptocurrency-based projects use PoD.<\/p>\n<p>Names, <strong>country of origin<\/strong>, social media handles, and personal email addresses are all stored in the PoD mechanism. Besides, the procedure entails checking the information and determining the developers' educational degree as well as their <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-github/">GitHub page.<\/p>\n<p><strong>PoD began in 2014 when<\/strong> crypto investors experienced losses as a result of <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-pump-and-dump-pandd-scheme/">pump and dump schemes<\/strong><\/a>. In the digital currency sector, these are scenarios in which malicious investors or developers of coins artificially boost prices. When they see a high return on their investments, they dump (sell) them, causing <strong>the price to drop<\/strong>, which results in the loss of money for other investors.<\/p>\n<p>At a time when <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-initial-coin-offering-ico/">initial coin offers (ICOs)<\/strong><\/a> were gaining popularity, PoD was developed. Some ICO issuers were merely looking to take advantage of naive investors. PoD allows investors to go beyond the flashy <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-roi/">ROI figures to discover if an <strong>ICO project actually has living, breathing developers<\/strong>.<\/p>\n<p>Furthermore, PoD helps to detect people who are simply copying and pasting other crypto codes and promoting them as their own original initiatives in order to attract investments.<\/p>","definition":"any proof that identifies a real, living software developer of a cryptocurrency.","status":"published","meta_title":"What is Proof-of-Developer (PoD)? Definition & Meaning | Crypto Wiki","meta_description":"Proof-of-Developer (PoD) meaning: Proof-of-Developer (PoD) - any proof that identifies a real, living software developer of a cryptocurrency.","meta_keywords":null}"
:model="{"id":940,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Consensus_(computer_science)","level":"easy","author_id":1,"created_at":"2023-06-19T06:59:01.000000Z","updated_at":"2023-11-24T19:41:24.000000Z","slug":"what-is-proof-of-donation","title":"What is Proof-of-Donation?","section":"P","keyword":"Proof-of-Donation","content":"<p>The <strong>incorporation of charity donations<\/strong> into the operation of a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-blockchain/">blockchain is known as Proof-of-Donation. Typically, this refers to the routing of cash toward a philanthropic goal, which is established by a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-smart-contract/">smart contract<\/strong><\/a> and <strong>activated with each transaction<\/strong>.<\/p>\n<p>The charitable donation can be given to a wallet owned by a charity or a separate fund in which funds are controlled by a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-are-decentralized-autonomous-organizations-dao/">DAO or other party.<\/p>\n<p>For instance, Hermez Network uses Proof-of-Donation, so administrators compete for the privilege to execute transaction volumes using the HEX token. <strong>40% of each winning bid<\/strong> is given to Gitcoin to finance <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-ethereum-eth/">Ethereum public goods, 30% is <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-burning/">burnt, and another <strong>30%<\/strong> is reassigned to the network.<\/p>\n<p>As a result, Proof-of-Donation is a variant of the original <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-proof-of-burn-pob/">Proof-of-Burn that focuses on bringing clarity and stability to the blockchain transfer paradigm. Since blockchain activities scale due to systematic reassignment of funds, <strong>charity gifts also scale<\/strong> and contribute to the network's long-term development.<\/p>\n<p>Besides, since charitable contributions are frequently tax-deductible, taxpayers must provide documentation of the transaction in the shape of an official dated receipt from the recipient organization or some other legal documentation of the transaction.<\/p>","definition":"is the inclusion of charitable donations into the functionality of a blockchain.","status":"published","meta_title":"What is Proof-of-Donation? Definition & Meaning | Crypto Wiki","meta_description":"Proof-of-Donation meaning: Proof-of-Donation - is the inclusion of charitable donations into the functionality of a blockchain.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master’s degree on Economics, Politics & Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US’ Western and Japan’s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}"
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current-chapter="P"
current-section="what-is-proof-of-donation">
