Proof of Capacity is a consensus mechanism that allows participants to mine or validate transactions based on their storage capacity rather than their computational power. Instead of using energy-intensive calculations like in Proof of Work, this method leverages available disk space.In Proof of Capacity, miners pre-compute solutions and store them on their hard drives. When it’s time to mine a block, they quickly access these stored solutions. The more storage a miner has, the more chances they have to find a valid solution and earn rewards.This approach aims to reduce energy consumption and promote a more environmentally friendly method of securing a network. It can also lower the equipment costs for miners since they rely on hard drive space instead of expensive GPUs or ASICs.A notable example of a cryptocurrency that uses Proof of Capacity is Chia. By utilizing unused storage space, Proof of Capacity encourages participation from a broader range of users, potentially making the network more decentralized.