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3. Advanced Course

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  1. 1. What is Taproot?
  2. 2. Blockchain bridges – what are they?
  3. 3. What is Ethereum Plasma?
  4. 4. What is Ethereum Casper?
  5. 5. What is Zk-SNARK and Zk-STARK? 
  6. 6. What is Selfish Mining? 
  7. 7. What is spoofing in the cryptocurrency market? 
  8. 8. Schnorr signatures - what are they? 
  9. 9. MimbleWimble - what is it? 
  10. 10. What is digital property rights in NFT?
  11. 11. What are ETFs and what role do they play in the cryptocurrency market? 
  12. 12. How to verify a cryptocurrency project – cryptocurrency tokenomics 
  13. 13. What is the 51% attack on blockchain?
  14. 14. What is DAO, and how does it work?
  15. 15. Zero-knowledge proof – a protocol that respects privacy 
  16. 16. What is EOSREX?
  17. 17. What is Proof of Elapsed Time (PoET)?
  18. 18. Mirror Protocol – what it is? 
  19. 19. What are synthetic assets? 
  20. 20. How to create your own NFT? 
  21. 21. Definition of DeFi, and what are its liquidations?
  22. 22. New identity system - Polygon ID
  23. 23. Ethereum Foundation and the Scroll protocol - what is it?
  24. 24. What is Byzantine fault tolerance in blockchain technology?
  25. 25. Scalability of blockchain technology - what is it?
  26. 26. Interchain Security - new Cosmos (ATOM) protocol
  27. 27. Coin Mixing vs. Coin Join - definition, opportunities, and threats
  28. 28. What is Ethereum Virtual Machine (EVM) and how does it work?
  29. 29. Soulbound Tokens - what are they, and how do they work?
  30. 30. Definition of LIDO - what is it?
  31. 31. What are Threshold Signatures, and how do they work?
  32. 32. Blockchain technology and cyberattacks.
  33. 33. Bitcoin script - what it is, and what you should know about it.
  34. 34. What is zkEVM, and what are its basic features?
  35. 35. Do confidential transactions on blockchain exist? What is a Confidential Transaction?
  36. 36. Algorithmic stablecoins - everything you should know about them.
  37. 37. Polygon Zk Rollups ZKP - what should you know about it?
  38. 38. What is Web3 Infura?
  39. 39. Mantle - Ethereum L2 scalability - how does it work?
  40. 40. What is the NEAR Rainbow Bridge?
  41. 41. Liquid Staking Ethereum and LSD tokens. What do you need to know about it?
  42. 42. Top 10 blockchain oracles. How do they work? How do they differ?
  43. 43. What are Web3.js and Ether.js? What are the main differences between them?
  44. 44. What is StarkWare, and recursive validity proofs
  45. 45. Quant Network: scalability of the future
  46. 46. Polygon zkEVM - everything you need to know
  47. 47. What is Optimism (OP), and how do its roll-ups work?
  48. 48. What are RPC nodes, and how do they work?
  49. 49. SEI Network: everything you need to know about the Tier 1 solution for DeFi
  50. 50. Types of Proof-of-Stake Consensus Mechanisms: DPoS, LPoS and BPoS
  51. 51. Bedrock: the epileptic curve that ensures security!
  52. 52. What is Tendermint, and how does it work?
  53. 53. Pantos: how to solve the problem of token transfer between blockchains?
  54. 54. What is asymmetric encryption?
  55. 55. Base-58 Function in Cryptocurrencies
  56. 56. What Is the Nostr Protocol and How Does It Work?
  57. 57. What Is the XDAI Bridge and How Does It Work?
  58. 58. Solidity vs. Rust: What Are the Differences Between These Programming Languages?
  59. 59. What Is a Real-Time Operating System (RTOS)?
  60. 60. What Is the Ethereum Rinkeby Testnet and How Does It Work?
  61. 61. What Is Probabilistic Encryption?
  62. 62. What is a Pinata in Web 3? We explain!
  63. 63. What Is EIP-4337? Will Ethereum Account Abstraction Change Web3 Forever?
  64. 64. What are smart contract audits? Which companies are involved?
  65. 65. How does the AirGapped wallet work?
  66. 66. What is proto-danksharding (EIP-4844) on Ethereum?
  67. 67. What is decentralised storage and how does it work?
  68. 68. How to Recover Cryptocurrencies Sent to the Wrong Address or Network: A Practical Guide
  69. 69. MPC Wallet and Multilateral Computing: Innovative Technology for Privacy and Security
  70. 70. Threshold signature in cryptography: an advanced signing technique!
  71. 71. Vanity address in cryptocurrencies: what is it and what are its characteristics?
  72. 72. Reentrancy Attack on smart contracts: a threat to blockchain security!
  73. 73. Slither: a static analyser for smart contracts!
  74. 74. Sandwich Attack at DeFi: explanation and risks!
  75. 75. Blockchain RPC for Web3: A key technology in the world of decentralized finance!
  76. 76. Re-staking: the benefits of re-posting in staking!
  77. 77. Base: Evolving cryptocurrency transactions with a tier-2 solution from Coinbase
  78. 78. IPFS: A new era of decentralized data storage
Lesson 17 of 78
In Progress

17. What is Proof of Elapsed Time (PoET)?

This is nothing more than another of the consensus mechanisms. Its task is very  simple. It is to prevent high resource utilization and energy consumption. It makes the  whole extraction process more efficient, all by using a fair lottery system. How does  the algorithm itself work from the inside? It uses randomly generated time that has  already elapsed to determine mining rights and block winners on the blockchain  network. I know, I know – sounds complicated 🙂 Relax – we explain everything in  detail below. PoET increases transparency and provides the ability for external users  to verify lottery results. All by running so-called trusted code in a secure environment. 

PoET consensus mechanism 

As you know from previous lessons, the consensus mechanism is used in blockchain  networks to verify transactions and create more blocks. The Proof of Elapsed Time is  used right here. It decides the mining rights or winners of blocks in the network. 

PoET works by relying on two key factors. Participating nodes choose a random  mining time, not the one chosen by the participant to win. Secondly, PoET  determines that the block winner has successfully completed the waiting time. 

The very concept of the mechanism was invented in 2016 by Intel Corporation. It was  a giant in the field of chip manufacturing. Intel has so far offered ready-made, high-tech tools for solving computational problems such as “random leader election.” Such  a mechanism allows applications to generate so-called trusted code in a selected  environment that meets two key requirements: 

∙ Random selection of waiting time for all node participants. 

∙ Actual completion of the waiting time by the winning participant. Moreover – the time is equal. 

The INTEL organization in collaboration with Linux or IBM sponsored the open source project Hyperledger Sawtooth, which also uses the PoET  mechanism. Hyperledger Sawtooth is a distributed ledger that scales solutions as  well as being adaptable to multiple applications at different enterprise levels. It can  be found in supply chain or logistics. And it can even be used for inventory management. It is also often used in tasks that consume a lot of time and are prone  to human error. Why are we mentioning this? Because the PoET consensus is just  mainly used in Hyperledger Sawtooth. As of January 2022, no cryptocurrency based on this consensus has been created. 

PoET – how it works 

As we mentioned earlier, the whole mechanism is based on the principle of a fair  lottery system. In it, each node has the same probability of being chosen, and the  chances of winning are spread over as many network participants as possible. Under  PoET, each node in the network waits for a randomly selected period. The node that 

completes the designated waiting time first will win a new block. This whole process  repeats and more blocks are discovered in this way. 

PoET vs PoW 

PoET PoW
Uses less energy than PoWIt is a competitive working mechanism.
Improves network performance by  putting a node to sleep and redirecting  it to other tasks.Continuously computes hashes until  miners find target values.
The trusted code cannot be changed by another participant.Relies on leaders.
Provides a way for network participants  or other authorized people to verify the  results.PoW is difficult to generate and is therefore  time and resource consuming.
Increases transparency of network  consensus.Accounts for as much as 90% of the total market capitalisation of existing  cryptocurrencies.
Controls the cost of the consensus  process and keeps it constant.Requires work from nodes that participate  in block validation.
Is a random selection mechanism.

Summary 

PoET is a consensus algorithm that was developed by Intel Corporation. It is  the one in the blockchain network that randomly permits who will create the  next block. 

∙ It works on the basis of the lottery principle. The chance of winning is  distributed equally to all participants in the network and everyone has the  same chance of winning. 

∙ It generates a random wait time for each node in the blockchain network. The  other nodes on the blockchain are dormant and are then engaged in other  work. 

∙ The node with the shortest wait time wins the block and can save it to the  blockchain. 

The workflow in PoET is very similar to Bitcoin’s PoW, but uses far less energy.

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