What is a Proof-of-Capacity token?

What is a Proof-of-Capacity token?

Consensus algorithms play a crucial role in blockchain networks and cryptocurrency ecosystems. Proof-of-Capacity (PoC) is an intriguing option, as it allows you to mine through hard disk space. This approach has many advantages, and today this option is being explored in many projects.

The purpose of the PoC algorithm

While not a standard consensus algorithm, Proof-of-Capacity has some appeal for blockchain and cryptocurrency ecosystems trying to get closer to global adoption. Since everyone has a device with a hard drive at their disposal, it becomes much easier to participate in such projects. There is no need for special equipment for mining or placing funds in a wallet connected to the Internet 24/7.

Instead, Proof-of-Capacity allows users to use hard disk space to mine crypto assets embedded in the network. The PoC stores a list of possible solutions on the device’s hard drive even before any “coin mining” activity begins. Users with a large hard drive can store more possible solution values, which increases the chances of getting rewarded for mining.

Since this consistent algorithm works with any hard drive, including mobile devices, it is more energy efficient, and users can reuse the hard drive after mining stops. Users also do not need to constantly update their hardware if they do not want to increase the available hard disk space for the mining process.

3 projects applying PoC

Although there are not many cryptocurrencies today that include Proof-of-Capacity, some projects are attracting attention in this area.

  • BXTB

This project sees advantages in Proof-of-Capacity, allowing users to mine the BXTB management token. In addition, users can stack this token with a stablecoin, such as USDT, to receive yBXTB and CHIP tokens. CHIP is the stablecoin of this ecosystem, while yBXTB creates opportunities for growing crops through decentralized financing.

At its core, BXTB is a DeFi protocol focused on creating highly liquid and versatile stablecoins. The embedded stablecoin CHIP is suitable for esports, gaming, and other industries where transaction tokens play a crucial role. Each time a CHIP transaction occurs, yBXTB holders are offered 0.25% of the transaction amount.

  • Bitcoin

The second example of a PoC is presented in the form of Burstcoin. The team intends to explore many different use cases, from payment solutions to smart contracts and crowdfunding, to arbitrary messaging. Offering an attractive concept for consumers, businesses, developers, and miners, Burstcoin is a worthwhile project to explore the potential of PoC.


The third is the BTCHD team using PoC for its BHD cryptocurrency. It aims to provide everyone with the ability to issue loans and provides a network capable of processing 70 transactions per second. These projects have a lot in common with Burstcoin, and you can even mine both currencies at the same time. This shows that there are many options that should be explored among PoC cryptocurrencies and blockchains.


While the concept of capacity validation remains largely unexplored, empowering users by allowing them to use up excess hard disk space is a big step forward. This is not only a “green” way of mining cryptocurrencies, but also a fairer distribution model. Everyone in the world has a device with hard disk space that they can allocate for this purpose.

Now that projects like BXTB are starting to explore real-world options for using their own PoC-generated cryptocurrency, an exciting era is dawning in the industry. Spreading cryptocurrency to the masses is a difficult task, but if everyone can participate without spending money on additional equipment, things can change for the better.