4 ms·
This is not my field, but I'm trying to understand crypto-currency econ here so please clue me in: So if the only reason for mining in currency blockchains is
by brianclements 11y ago
This is not my field, but I'm trying to understand crypto-currency econ here so please clue me in:
So if the only reason for mining in currency blockchains is the incentive to earn, what would be the incentive for a private blockchain network that didn't incorporate a currency? Could it be that their incentive is the reduced cost (in fiat money) of doing business? So that they could in effect voluntarily do the verification part of mining without the need for currency incentives?
I would imagine that it shouldn't be too difficult to set up enough adversarial but voluntary mining parties in a huge financial system such as the US financial system to bring a collective sense of safety to that closed blockchain no?
- sanswork 11y agoPublic blockchains use mining as a means to decide who gets to add the next block. That is all it is good for. That is useful in public chains because 1 entity adding multiple blocks in a row basically gives them control of the history. In a private chain where you know all the participants this doesn't matter since there are easier ways to decide who gets to go next(ie. round robin). So no mining is needed for a private chain and it is no less secure(probably even more secure than most public chains due to the cheapness of 51% attacks )
- brianclements 11y agoThank you.
- deleted 11y ago[deleted]
- mooneater 11y agohow does this differ from say using git, with access controls, where each commit is a transaction. to me blockchain implies proof of work.
- sanswork 11y agoNot hugely. Same for a lot of Bitcoin fans. Making up a definition to exclude private chains doesn't make them less useful though it's just mental masturbation.