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> they don't require the crazy processor thrashing that is bitcoin mining, either How do you verify someone did something worth of getting the coin?

• shawabawa3 13y ago
  You trust the central authority
  • rplnt 13y ago
    I get that part. But how would clients mine? Can't they just tell the central server that they did something, when in fact they didn't?
    • Nursie 13y ago
      >> I get that part. But how would clients mine? Why would they need to? I'm not sure I really understand why it has to be part of the model in the first place? The company in question (as central authority) could give out coin any way it saw fit. Is it because you need their buy-in or the currency won't work? Why would that be? Miners make up a smaller and smaller proportion of BTC users all the time so. They may be needed to bootstrap a crypto currency as we understand it in the case of BTC, but it doesn't seem to be necessary that they make up a large proportion of the continuing userbase. In BTC they're also important because they secure the network, but a centrally issued crypto-currency doesn't have that problem.