PoE is a consensus mechanism used in some blockchain networks to validate transactions. It works by allowing participants to compete for the right to create a new block in the chain. In PoE, instead of solving complex mathematical problems like in Proof of Work (PoW), participants wait for a randomly generated time period to elapse before creating a new block.
During this waiting period, participants run a trusted execution environment (TEE) on their computer to ensure fairness. The TEE generates a random timer, and the participant whose timer expires first can create a new block. This process ensures that no single participant can predict when their timer will expire, making it a fairer way to determine who gets to add the next block to the chain.
PoE is considered to be more energy-efficient than PoW because it doesn’t require participants to compete in computationally intensive tasks. It also helps to reduce the risk of centralization by providing a more fair and random way to select block creators.
