6 ms·
> “Proof-of-Work” exists because money is being created. It is, then, impossible to “create a new form of money” without invoking Proof-of-Work. > Satoshi’s de
by qznc 9y ago
> “Proof-of-Work” exists because money is being created. It is, then, impossible to “create a new form of money” without invoking Proof-of-Work.
> Satoshi’s design insight was to channel that inevitable work into a cumulative process, to optimally stablize a peer-to-peer clock in a cartel-resistant way.
– Paul Sztorc http://www.truthcoin.info/blog/pow-cheapest/ http://www.truthcoin.info/blog/pow-cheapest/
- deleted 9y ago[deleted]
- acjohnson55 9y agoAnd yet, in some sense, cartels are exactly what we have, in the form of mining pools.
- rothbardrand 9y agoless than perfect decentralization is still more decentralization than a monopoly. in this case the competition is a monopoly (eg fiat)
- QAPereo 9y agoAnything that isn’t a monopoly is, “more decentralized than a monopoly.” ...
- xg15 9y agoHow is something cartel-resistant that requires that entities must accumulate more and more capital (mining power) to still be able to participate?
- tboyd47 9y agoMining profitability is an equation with many variables. If the value of the reward climbs faster than mining technology advances, we might see mining open to regular people again. Also, the traditional cartel action of limiting supply to inflate price would not work in Bitcoin due to auto-adjusting difficulty.
- diegocerdan 9y agoAt Proof-of-Stake the "Proof-of-Work" is the value lost by stacking up tokens and not having them being productive otherwise. This value could be around 4% per year, same as having them on a safe invest. The good thing is that you have to "work less" (just 4%) but if you are a malicious actor you lose all your stake (100%). In conventional PoS you can only lose what you invest, that is why PoS is so expensive.