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Miners are incentivized to store data via a storage endowment, which pays a principle up-front and accrues interest over time. [1] As cost of storage decreases
by emptysongglass 4y ago
Miners are incentivized to store data via a storage endowment, which pays a principle up-front and accrues interest over time. [1] As cost of storage decreases faster than the interest, storage is secured. Read the yellow paper for a technical deep dive. [2]
[1] https://www.arweave.org/technology#blockweaves https://www.arweave.org/technology#blockweaves
[2] https://www.arweave.org/yellow-paper.pdf https://www.arweave.org/yellow-paper.pdf
- csande17 4y agoIs the interest denominated in a fictional currency whose only value is derived from the fact that you have to buy it to participate in this system? If so, then yes, this system depends on an infinite stream of new customers paying in in order to continue to support the existing ones.
- johntash 4y agoWhen did "Yellow paper" become a thing? Searching makes me think it's specific to crypto companies?