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21 block producers are acting as the hosts of the network. They build, maintain and pay all server costs for all time. If a BP fails to do his or her job, they'

21 block producers are acting as the hosts of the network. They build, maintain and pay all server costs for all time. If a BP fails to do his or her job, they're replaced by vote. In return they're entitled to be paid from network inflation. A rate which is agreed on by vote and divide up amongst the 21. The users receive a decentralized network, free of any costs to transact (no fees) and infinitely scalable.

colordrops 9y ago
Sounds like an oligarchy rather than a decentralized system.
- Zenbit_UX 9y ago
  You would think so but in fact it's proveably more decentralized than any current crypto. The arms race in crypto mining has led to an impossibility of solo-mining. Miners now join a pool or will never see a dime for their efforts. Overtime smaller pools dwindle and merge or die out until only a few survive. Believe it or not bitcoin has less than 10 pools controlling the network - which is highly concerning due to a possibility of a 51% attack and ethereum is no different.
  - colordrops 9y ago
    The difference is that there is that anyone can create a pool without permission from the other pools. There are subreddits with more than 21 mods that have been easily infiltrated and taken over. You can't socially engineer a mining pool
    - Zenbit_UX 9y ago
      While I appreciate your questions I get the feeling that your trying to poke holes in a very well researched and funded project based on what you read of it in my comments. There's much more to the project and a lot of brilliant people with over a billion dollars in funding making sure this thing is bulletproof. So if you're interested in learning more about it I'd recommend you read their whitepaper as it will be a much better source of information. However to quickly answer your comment, the 21 are elected by vote and are easily replaced by vote from the users they serve.

colordrops 9y ago

Sounds like an oligarchy rather than a decentralized system.

Zenbit_UX 9y ago
You would think so but in fact it's proveably more decentralized than any current crypto. The arms race in crypto mining has led to an impossibility of solo-mining. Miners now join a pool or will never see a dime for their efforts. Overtime smaller pools dwindle and merge or die out until only a few survive. Believe it or not bitcoin has less than 10 pools controlling the network - which is highly concerning due to a possibility of a 51% attack and ethereum is no different.
- colordrops 9y ago
  The difference is that there is that anyone can create a pool without permission from the other pools. There are subreddits with more than 21 mods that have been easily infiltrated and taken over. You can't socially engineer a mining pool
  - Zenbit_UX 9y ago
    While I appreciate your questions I get the feeling that your trying to poke holes in a very well researched and funded project based on what you read of it in my comments. There's much more to the project and a lot of brilliant people with over a billion dollars in funding making sure this thing is bulletproof. So if you're interested in learning more about it I'd recommend you read their whitepaper as it will be a much better source of information. However to quickly answer your comment, the 21 are elected by vote and are easily replaced by vote from the users they serve.