Proof-of-History is a special mechanism used by Solana to validate transactions. It timestamps every transaction and keeps a chronological record of all events.
Blockchains use complex consensus mechanisms to verify transactions and add new data to the network. Traditional blockchains like Ethereum and Bitcoin require all the computers in the network to verify the order in which transactions are made. This often takes a lot of time and resources to complete.
Newer blockchains such as Solana solve this problem by using Proof-of-History (POH), a consensus mechanism that uses a special timestamping technique to keep a continuous record of events. Through sequential hashing and the verifiable delay function (VDF), each new transaction is linked to the one before it. The network makes sure to delay transactions by enough milliseconds to be able to process them one after another.
Every transaction gets its own timestamp, allowing the network to create a chronological record of every event. This allows the blockchain to prove the order of transactions without needing to confirm with all the devices on the network. It also prevents anyone from secretly altering past transactions.
A blockchain that uses PoH doesn't need to spend so much energy and resources. It can process transactions very quickly and efficiently, which is a must in industries like financial services, gaming, and decentralized exchanges that need to be updated in real time.
