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powering PKT Network and PKT Cash.

PacketCrypt is open source, which means that anyone can view the source code and contribute to the project. Here you will find a deeper explanation about how PacketCrypt works.

The structure of the PKT Network is based on Proof of Work (PoW), the same way that many other blockchains function. PoW algorithms are difficult mathematical puzzles. The PoW of a blockchain is the agreed algorithm used to confirm transactions and create new blocks into the chain. For instance, Bitcoin uses a PoW called SHA-256. Miners compete with each other by performing PoWs as fast as possible, and the miner that finds the right solution to the puzzle first gets rewarded with a newly minted currency.

The difference with PacketCrypt is it provides a new way of computing PoW by requiring bandwidth to be expended, instead of processor effort, in order to mint new coins. This new mathematical puzzle is called a Bandwidth Hard Function (BHF) PoW developed by famed technologist and security analyst Caleb James DeLisle. While Memory-Hard Functions (MHF) have been around for a while, BHFs is a relatively new proof of work. At its core, a BHF is a MHF which has a lower minimum bound on its memory allocation.

MHF functions are mathematical calculations that require large amounts of memory to compute. Since the economic efficiency for memory access for a CPU is the same for an application-specific integrated circuit chip (ASIC), we construct a function that requires ample memory to compute. In a BHF, each computation builds upon the previous, to create the final one, represented by a hash function. This creates a threshold, where below it, the function can be computed faster in parallel. The goal is to stay ahead of this threshold, and we accomplish it by using a mathematical geometric series instead of a probability density function.

For more detail about the mathematical calculations of BHF PoW, please refer to the following paper: Vishnu Seesahai 2019, Packet Crypt Bandwidth Hardness.

For more detail about the PKT code repository, please refer to the following GitHub code documentation: Caleb James DeLisle 2019, PacketCrypt/Readme.md.