4 ms·

I've been avoiding the altcoin zoo as much as possible, but Ethereum is worth looking at. It fixes key features of bitcoin (12 second vs 10 minute transactions)

by gcp 9y ago

I've been avoiding the altcoin zoo as much as possible, but Ethereum is worth looking at. It fixes key features of bitcoin (12 second vs 10 minute transactions) though smart handling of stale blocks, actual memory hard mining algorithm (unlike Litecoin that didn't turn to be) and adds a whole new dimension to the blockchain with the built-in VM and computer. Just Google the DAO incident for some amusing and interesting reading. Proof of stake should IMHO NOT be mentioned, doing so is very misleading. Ethereum doesn't use it, and if a suitable algorithm was ever developed, any coin could switch to it in the same way as Ethereum will.

aaron-lebo 9y ago
Peercoin was proof of stake five years ago.
- gcp 9y ago
  And the algorithm used has weaknesses and undesirable properties (nothing-at-stake-problem), which is why it's not used elsewhere. Here's some introductory reading: https://github.com/ethereum/wiki/wiki/Proof-of-Stake-FAQ https://github.com/ethereum/wiki/wiki/Proof-of-Stake-FAQ
- TD-Linux 9y ago
  It also relies on centrally signed checkpoints in order to survive stake grinding attacks. I'm pretty sure such a solution would not be considered acceptable for Ethereum. https://download.wpsoftware.net/bitcoin/alts.pdf https://download.wpsoftware.net/bitcoin/alts.pdf
um_ya 9y ago
Downside is that Ethereum doesn't have a cap on number of coins, which means it has high inflation (20% a year right now). Also, Ethereum uses A LOT of disk space, over 1GB is added every month.
- gcp 9y ago
  Storing the entire state history isn't really needed though. I'm not sure how much inflation is a concern given the volatile exchange rate of any coin. It can't arbitrarily change either, so it's not quite like fiat money.
  - um_ya 9y ago
    To put it into perspective, the USD has an inflation rate of 2% a year, according to the feds target.
- ricw 9y ago
  For 2017 it is 14.75% [1]. The bigger question is to what it may change in the future. Vitalik has stated that it will be lower / closer to zero, but who knows. The only given is that it will change. [1] https://ethereum.stackexchange.com/questions/12501/what-is-ethereums-inflation-rate-how-quickly-will-new-ether-be-created https://ethereum.stackexchange.com/questions/12501/what-is-e... Updated typo: 14.75%, not 1475..
  - gcp 9y ago
    You made a typo and are off by a factor of 100.
nmca 9y ago
It seems quite relevant to me - the ethereum foundation has a reference implementation of PoS and is planning to begin a partial transition within 6 months. It's clearly roadmapped, and much development has been done already, unlike the vague assertion that "other coins would switch to it"

by gcp 9y ago

aaron-lebo 9y ago

Peercoin was proof of stake five years ago.

gcp 9y ago
And the algorithm used has weaknesses and undesirable properties (nothing-at-stake-problem), which is why it's not used elsewhere. Here's some introductory reading: https://github.com/ethereum/wiki/wiki/Proof-of-Stake-FAQ https://github.com/ethereum/wiki/wiki/Proof-of-Stake-FAQ
TD-Linux 9y ago
It also relies on centrally signed checkpoints in order to survive stake grinding attacks. I'm pretty sure such a solution would not be considered acceptable for Ethereum. https://download.wpsoftware.net/bitcoin/alts.pdf https://download.wpsoftware.net/bitcoin/alts.pdf

um_ya 9y ago

Downside is that Ethereum doesn't have a cap on number of coins, which means it has high inflation (20% a year right now). Also, Ethereum uses A LOT of disk space, over 1GB is added every month.

gcp 9y ago
Storing the entire state history isn't really needed though. I'm not sure how much inflation is a concern given the volatile exchange rate of any coin. It can't arbitrarily change either, so it's not quite like fiat money.
- um_ya 9y ago
  To put it into perspective, the USD has an inflation rate of 2% a year, according to the feds target.
ricw 9y ago
For 2017 it is 14.75% [1]. The bigger question is to what it may change in the future. Vitalik has stated that it will be lower / closer to zero, but who knows. The only given is that it will change. [1] https://ethereum.stackexchange.com/questions/12501/what-is-ethereums-inflation-rate-how-quickly-will-new-ether-be-created https://ethereum.stackexchange.com/questions/12501/what-is-e... Updated typo: 14.75%, not 1475..
- gcp 9y ago
  You made a typo and are off by a factor of 100.

nmca 9y ago

It seems quite relevant to me - the ethereum foundation has a reference implementation of PoS and is planning to begin a partial transition within 6 months. It's clearly roadmapped, and much development has been done already, unlike the vague assertion that "other coins would switch to it"