VRF-PoW: Proof of Work Consensus With Verifiable Random Function

Abstract

Proof of Work (PoW) is a fundamental and widely adopted consensus mechanism in blockchain systems that enables effective consensus in permissionless environments, solely through block propagation without additional message exchange between nodes. However, PoW can result in excessive energy consumption and network centralization. This paper proposes VRF-PoW, a novel consensus protocol that reduces energy consumption while preserving the decentralized and permissionless nature of PoW. The VRF-PoW method integrates Verifiable Random Functions (VRFs) into the PoW process, reducing network energy consumption. To prevent Sybil attacks, this work introduces a pre-PoW phase. Further, this work validates VRF-PoW via a theoretical analysis and numerical evaluation. The results demonstrate that VRF-PoW significantly reduces energy consumption compared to the traditional PoW, while maintaining decentralization, stable block generation, and network liveness. © 2013 IEEE.