What is Proof of Developer (POD)?
Proof of Developer or PoD is a type of verification mechanism that seeks to discover the identity of a real, living software developer behind a new cryptocurrency. This mechanism is often used during the launch of new cryptocurrencies to prevent a random developer from stealing investors’ funds without providing a workable plan for the new project.
Most cryptocurrency projects are funded by investors before they go mainstream. Due to the large amount of money investors give, they need to verify investors that the project is viable and has been created by a real human developer.
To keep hackers away, the PoD process is kept confidential, and the profile of the developer is only shared with investors. The proof of developer exercise enables investors to confidently invest their money in a new cryptocurrency project.
Proof of Developer was a mechanism that was first used in 2014 to help cryptocurrency and ICO projects verify that they are actively managed by real developer(s).
During this time, there were several instances of pump and dump altcoins and ICOs. And many investors lost a good amount of their money to scammers who created random cryptocurrencies from copying the codes of existing real projects.
What Is Proof-of-Work?
Proof-of-work is one of the earliest blockchain algorithms that secures many cryptocurrencies, including Bitcoin and Ethereum. The proof-of-work algorithm allows the nodes of a blockchain network to agree on the state of all information recorded on the blockchain and hinders the network from experiencing certain kinds of attacks.
This mechanism allows the Bitcoin network for instance, to come to an agreement or consensus on some kind of data like account balances and the order of transactions in the network. This prevents users from “double spending” their coins and ensures that the Bitcoin network is extremely difficult to attack or manipulate.