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The challenge is getting the market to value the token that miners are paid in, such that the chain is sufficiently protected by their proof-of-work. Digital mo
by runeks 9y ago
The challenge is getting the market to value the token that miners are paid in, such that the chain is sufficiently protected by their proof-of-work. Digital money may be the only thing valuable enough to absorb the capital loss associated with the energy spent on proof-of-work, whereas a messaging board -- or any other application that creates relatively little value -- will not generate enough profits to cover the miners' work.
The only reason the Bitcoin blockchain is mined so heavily is because of its tokens' high price -- and sufficient market depth, which can absorb miners cashing out their earnings -- which basically sets in motion something that can't be stopped until it reaches non-profitability, unless the entire world decides to forego profitable Bitcoin mining.
- freeflight 9y agoBut that's pretty much the same challenge any cryptocurrency faces and even BC faced in it's beginning. BC got past that hurdle to a certain degree, why can't something with actual "usability for the masses", in the form of an open, transparent and uncensored discussion platform, do the same?