Updates

2017年12月

About useful Proof Of Work

About the rise of Proof of Stake, we could well see the rise of what I call useful Proof of Work in 2018....

With the huge increase of transactions fees of Bitcoin (between 15 and 30 usd according to https://bitcoinfees.info/ now, can you believe it?!), we really need to do something about the huge waste of money when it comes to verifying the blocks.

Though proof of works has its utility because it enables a solid security and though I do not think it will fade away, there must be much cheaper ways 1) of securing the blockchain or less wasteful ways 2).

1) is being tackled by proof of stake and I think it is a question of time before we see it recognized generally by the crypto communities as a legitimate way of securing the blockchain.

Most of the new kids on the block are proof of stake based crypto assets and I believe we will see a huge boom of proof of stake in 2018 as I talked about, in my previous post, (http://nuventures.org/news/archives/28) ,

whereas,

2) is being tackled by useful proof of work like Primecoin (http://primecoin.io/) for example or Filecoin (https://filecoin.io/) .

Primecoin aims at finding chains of certain types of prime numbers in its algorithm: miners are incentivized to try to come up with more efficient/fastest ways to find these chains. So while you contribute to the security of the network, you contribute to mathematics.

In the case of Filecoin, you need to output a proof of providing some space for storage in order to be rewarded by the network which corresponds to contributing to the security of the network. So you provide a useful work besides securing the network.

 

I believe we will see, right after the rise of Proof of Stake the rise of useful Proof of Work, possibly in 2018.

And then we will see the rise of decentralized autonomous organizations or corporations after these 2 types of consensus will have gone mainstream and it could be very quick.

And merry X’Mas!

 

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blog   2017/12/25   uploada

The future is PoS

The rise of Proof of Stake in 2018 with Peercoin

We are seeing the beginning of the end for the paper-based FIAT money.

Crypto-currencies are growing in terms of total market cap every day.

However, as Cliff High says, it is not that they have an intrinsic value per se but rather than their value is derived relatively to FIAT money which is losing value everyday by hyperinflation that has been put in place to keep the system afloat after the subprime mortgage market collapsed in 2008.

Interestingly enough, Bitcoin was released right after, in January 2009.

Next year in 2018, that will be 10 years since the era of hyperinflation began and that will be the end of the cycle.

However most the market cap (around 85~90%) is still generated by Proof of Work assets.

Proof of Work needs you to have a lot of computing power in order to be able to participate into the network.

The learning curve is very high. Only the nerds do mining.

In order to democratize nodes verification which is the basis in a blockchain to get rewarded by coins, we need other types of consensus.

Here comes PoS or Proof of Stake.

In PoS, which could be regarded as virtual mining, you are eligible for block verification based on the stake of the network you own.

This idea was first introduced by Peercoin which has been running since 2012 without any issues . However most people have been ignoring it because of the nothing at stake issue, which can be regarded as a false problem.

Several solutions have been proposed, including the double minting detection mechanism by Peercoin or Casper in Ethereum.

Interestingly enough, most of the new kids on the block, Cardano, NEO, EOS have a consensus mechanism based on proof of stake.

Also, Ethereum is scheduled to shift to Proof of Stake in June 2018.

Also, Tezos is a pure Proof of Stake.

Let us not forget NEM, which is running on Proof of Importance, a derivative of PoS.

That means something for the significance of PoS.

Needless to say that I have been a huge proponent of Peershares and Nushares which are based on Peercoin source code, though they have yet to get off the ground but recently NuShares has been seeing a rapid increase of price and NuBits, the pegged crypto issued by Nu, the Decentralized Autonomous Organization that is controlled by shareholders who hold NuShares, has seen a significant adoption increase.

After 2 years of being absent from the peercoin community, I am back after having seen the significant achievement of the community in between.

I have the feeling that PoS will be instrumental in democratizing cryptos for the masses, though Proof of Work will coexist together with it.

However I predict PoS will be even more important that PoW and we will see a huge competition from PoS to PoW starting in 2018, and I believe Peercoin, being the first proof of stake crypto asset with a growing momentum, a community and a perfect history with no hack or issues could be instrumental in promoting Proof of Stake for the masses.

 

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blog   2017/12/07   uploada