PoET is a novel consensus algorithm that allows a node to be selected randomly based on the time that the node has waited before proposing a block.
This concept is in contrast to other leader election and lottery-based proof of work algorithms, such as the PoW used in Bitcoin where an enormous amount of electricity and computer resources are used in order be elected as a block proposer; for example in the case of Bitcoin.
Hyperledger Sawtooth’s Energy-Efficient Consensus
PoET is a type of Proof of Work algorithm but, instead of spending computer resources, it uses a trusted computing model to provide a mechanism to fulfill the Proof of Work requirements.
PoET makes use of Intel’s SGX architecture (Software Guard Extensions) to provide a trusted execution environment (TEE) to ensure randomness and cryptographic security of the process.
It should be noted that the current implementation of Sawtooth Lake does not require real hardware SGX-based TEE, as it is simulated for experimental purposes only and as such should not be used in production environments.
The fundamental idea in PoET is to provide a mechanism of leader election by waiting randomly to be elected as a leader for proposing new transactions.
PoET, however, has a limitation which has been highlighted by Ittay Eyal.
The research paper is
Why This Matters for Blockchain Technology
This limitation results in hardware wastage, which can result in the waste of resources.
There is also a possibility of hacking the chip’s hardware, which could result in system compromise and undue incentivizing to miners.
Key Points to Remember
- PoET PoET is a novel consensus algorithm that allows a node to be selected randomly based on the time that the node has waited before proposing a block.
- This concept is in contrast to other leader election and lottery-based proof of work algorithms, such as the PoW used in Bitcoin where an enormous amount of electricity and computer resources are used in order be elected as a block proposer; for example in the case of Bitcoin.
- PoET is a type of Proof of Work algorithm but, instead of spending computer resources, it uses a trusted computing model to provide a mechanism to fulfill the Proof of Work requirements.
- PoET makes use of Intel’s SGX architecture (Software Guard Extensions) to provide a trusted execution environment (TEE) to ensure randomness and cryptographic security of the process.
Conclusion
PoET represents one of the many innovative layers that make blockchain technology so powerful and transformative. As distributed systems continue to evolve, a solid understanding of these core concepts becomes increasingly valuable — not just for developers, but for anyone building, investing in, or working alongside blockchain-powered systems.
Whether you are just starting your blockchain journey or deepening existing expertise, mastering these fundamentals gives you the tools to think clearly about decentralized systems and make smarter decisions in this rapidly evolving space.