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It's great for buying drugs though! (Which is funnily the only actually legitimate usecase)
How Monero’s proof of work works
31–40 of 244 posts
Re: How Monero’s proof of work works
#32Earlier quoted context omitted.
Lightning Network, ready in 18 months for the last 5 years! Lol.
What exactly are you missing that i.e. PhoenixWallet or Electrum is providing? The only thing missing is merchant adoption - but bitcoin is far ahead monero in this field.
Monero has utterly failed in merchant adoption. If you go to something like cryptwerk, which is what getmonero themselves recommends as a vendor list, It has about 1/2 the vendors of even the roughly same market cap coin Litecoin.
Re: How Monero’s proof of work works
#33If folks are interested in the old Monero PoW function (and, uh, the reason they changed it), I wrote up a thing about it a long time ago: https://da-data.blogspot.com/2014/08/minting-money-with-mone... The history of people trying to design GPU or ASIC-resistant proof-of-work functions is long and mostly unsuccessful. I haven't looked into RandomX; it's possible they've succeeded here (or possible that with the alt-…
There was a proposal on Ethereum that didn't succeed (progpow) since they were already in the late stage of transitionning to PoS. Ethereum did quite a good job at keeping asic advantage moderate (the speedup was 100% max - not orders of magnitude). RandomX is basically progpow that succeeded. You might be interested in Chia's Proof of Space and Time... and how it collapsed!
Re: How Monero’s proof of work works
#34[flagged]
It's solving a lot of people's problems, they just aren't your problems.
Re: How Monero’s proof of work works
#35Earlier quoted context omitted.
So now I'm wondering, why wouldn't they just charge a transaction fee in Monero? Why mine at all? If you want to scale up to Mastercard levels.
A transaction fee of what? To take a fee from a transaction there has to be a transaction to take a fee from, which needs some sort of "coin" that came from somewhere. Somebody has to create a money supply and distribute it somehow. When the network first comes into existence, nobody has any money, so where does it come into being from? Mining is what generates the coins. And you need mining because otherwise you nee…
It is subtle, but PoW mining itself doesn't generate coins. It isn't like someone is digging a hole in the ground and extracting gold.
PoW miners are rewarded for correctly validating transactions, with newly minted coins.
The whole proof of work thing is that you proved that you validated a transaction by expending energy, and the network pays you for that security service.
Miners then need to sell those coins on the open market in order to pay for their capex/opex, which creates the market.
The open question is that if you have a fixed supply of coins that eventually runs out, what will carry the miners?
It'll be increased fees or the network will switch to another solution.
Re: How Monero’s proof of work works
#36Earlier quoted context omitted.
ETH is trying right now with proof of ownership.
Which automatically makes in possibly centralized (you can never ever guarantee that not a single entity - or group of colluding entities - hold the majority stake and thus excert control).
Isn't the point of Proof of Stakes that you hold some amount of coin to exert that control. If someone or some group get majority stake, doing anything nefarious would result in crashing the coin value, and thus nuke their own coin value?
Re: How Monero’s proof of work works
#37Earlier quoted context omitted.
ETH is trying right now with proof of ownership.
Which automatically makes in possibly centralized (you can never ever guarantee that not a single entity - or group of colluding entities - hold the majority stake and thus excert control).
There are mechanism in place to prevent attacks, that require more than 51% control of staked ETH. The team behind ETH probably stayed on PoW for a long time to build the market cap such as to make attacks unlikely by the sheer amount of capital required.
Re: How Monero’s proof of work works
#38I never quite understand this stuff, maybe someone can help. Are cryptocurrencies supposed to be a potential replacement for real life cash? This was my understanding of the motivation behind Bitcoin, at least. If so, why does it make sense that people can "generate" cash by proving some amount of work done? This of course cannot be done with normal cash. Is the main functionality of these cryptocurrencies supposed t…
> This of course cannot be done with normal cash. Normal cash is just printed out from thin air by those who have the power. In that sense (some) cryptocurrencies are better because at least the process is open.
Fiat money is proof of stake, except the failure mode is economic collapse or military collapse.
Re: How Monero’s proof of work works
#39I never quite understand this stuff, maybe someone can help. Are cryptocurrencies supposed to be a potential replacement for real life cash? This was my understanding of the motivation behind Bitcoin, at least. If so, why does it make sense that people can "generate" cash by proving some amount of work done? This of course cannot be done with normal cash. Is the main functionality of these cryptocurrencies supposed t…
Broken Money by Lyn Alden is a good book on the topic
Lyn Alden is great. Andreas Antonopoulos is also a great educator.
Re: How Monero’s proof of work works
#40I never quite understand this stuff, maybe someone can help. Are cryptocurrencies supposed to be a potential replacement for real life cash? This was my understanding of the motivation behind Bitcoin, at least. If so, why does it make sense that people can "generate" cash by proving some amount of work done? This of course cannot be done with normal cash. Is the main functionality of these cryptocurrencies supposed t…
Yes, Bitcoin is a replacement for central banking currencies. Its the first few lines of the white paper. This is how money works. If you use a medium of exchange and unit of account for goods and services then that medium must increase at the same rate as the increase in goods and services otherwise you get second and third order effects such as inflation, contraction, rising unemployment, etc., directly impacting i…
> Wall Street got ahold of it and now Bitcoin is primarily acting as a Store of Value for the purpose of speculative investments
Insomuch as beanie babies are a store of value. Speculative assets only have value as long as there are more greater fools to buy in. When you've exhausted the supply of greater fools, there is no more reason to buy the speculative asset because its price won't go up, so it will fall to its intrinsic value, which is the worth of a normal stuffie for a beanie baby (roughly $5) or the worth of a number stored on other people's disks for a Bitcoin (roughly $0), which is the value ultimately stored. Wall Street is only involved in Bitcoin to facilitate trade between fools because we have collectively done a poor job of regulating this madness, allowing so many fools to eventually lose their money to a distributed Ponzi scheme and sanctioned countries.