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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

NuBits: achievements after 15 months of operation [part-2]

"- A healthy core mechanism that has been established

NuBits is NOT backed by fiat reserves but by the value of the issuing "bank" like corporation Nu.

NuBits (NBT) get sold by Nu for BTC and the BTC get invested in development (increasing the value of Nu), share (NuShares; NSR) buybacks and very little in marketing and other activities.

While sold NBT are only temporary revenue (the NBT in circulation are a liability for Nu), NBT get destroyed with transaction fees.
Destroyed NBT are final revenue for Nu.
Nu is still young and evolving, but the peg has been kept at exactly 1 USD.

The close peg is a direct result from the compensation that is paid to liquidity providers to put orders with a close spread on order books;

 

- NBT have all attributes good crypto currencies have:

* the blockchain is being run in a decentralized manner.
* NBT owners can have total control over their NBT by sending them to an address for which only they have the private key (an experimental web wallet is available, though).
* multi signature transactions are available to increase security and allow escrowed transactions.
* the source code is open, but compiled wallets for Windows, MacOS and Linux are available (as well as at least 2 apps for Android: Coinomi (btw. the Coinomi developer is one of Nu's core developers) and NuDroid).

 

- If there's need to adjust Nu, there's the incredibly powerful "motion" feature. 
This has been used for a lot of strategic decisions and can be used for anything that requires a consensus of those who have a stake in Nu. NSR holders (the owners of Nu) can decide what to do.
Nu is a corporation with business process on a blockchain - the same blockchain that processes NBT transactions.

 

- Meanwhile you can use NuBits for hedging crypto currency volatility.

 

- NuBits is in a unique position if the following attributes are important: 

* open source
* decentralized
* being pegged to fiat, but not depending on fiat (not holding fiat as collateral)
* stable!
 

- NuBits has successfully proven that it is possible to create a stable crypto-currency. Imagine that the design of Ethereum had been based on a stable coin (tracking say the dollar / euro) which would be used to pay for transactions and a separate share token that is used to stake out consensus.

 

- NuBits is secure:

* Nu is check-point free for over a year with no problem. 

* Relies on Peercoin Proof of Stake, to which the objections  are purely theoretical and bad theory at that. The only real argument against PoS comes down to whether you can trust humans to come to consensus about something over the long term (weak subjectivity). The fact that some governments (a long-term human consensus process) have existed for hundreds of years kinda flies in the face of the 8 years btc has existed for. Note that weak subjectivity is also used in bitcoin (btc core) and is revealing a lot of politics on the long term scale. Basically, the only flaws Peercoin or Nu have are the same flaws that bitcoin and in fact all governments and human consensus processes face."

 

 

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release   2015/12/11   gbboy

NuShares, Bitcoin and Peercoin

About why Nu has the right economics while having a good intrinsic decentralization.

Economically, from a production cost perspective, bitcoin works well, peercoin does not.

Technologically, from a decentralization perspective, it is the opposite.

Nu combines the best of both worlds: you hold nushares, which decentralizes the network because you expect it would bring you dividends.

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blog   2015/10/10   uploada
タグ:peercoin