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Absolutely true, no one needs monero when you can have bitcoin (and lightning for private instant bitcoin payments).
How Monero’s proof of work works
11–20 of 244 posts
Re: How Monero’s proof of work works
#12If 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-…
This was a super interesting read, and it highlights exactly the strength of cryptocurrencies. They turn game theory in their favor, so egoistic players (I don't mean this in an offensive tone) contribute to making it stronger and safer for everyone else.
Thank you for sharing!
Re: How Monero’s proof of work works
#13I 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 was hijacked by the company, Blockstream and they injected the SegWit and RBF attacks to kill it as a currency, Bitcoin Cash still functions as Bitcoin however.
Monero is similar to Bitcoin Cash, a useful replacement for cash in most cases.
Re: How Monero’s proof of work works
#14I 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…
> If so, why does it make sense that people can "generate" cash by proving some amount of work done? Think of it this way: If you pay with physical cash, there are people somewhere who do the work of digging ore out of the ground, smelting it, shaping it into coins, cutting and printing paper and so on. All these people do that, because they get paid in the same currency that they themselves have minted. It turns out…
ETH is trying right now with proof of ownership.
Re: How Monero’s proof of work works
#15I 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…
> If so, why does it make sense that people can "generate" cash by proving some amount of work done? Because you need an incentive for 'miners' to participate in transaction processing. Main functionality is transactions which are not controlled by any single entity (like the government). Most of it is speculation unfortunately, which gives it a bad name, drowning out real usecases.
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.
Re: How Monero’s proof of work works
#16Re: How Monero’s proof of work works
#17I 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…
It's just a mechanism to incentivize mining. The alternative is that miners are paid only via fees, but that risks making it prohibitively expensive to transact. Minting new coins distributes the cost of mining over all holders by inflating the currency a little bit. Fees are still necessary to avoid spamming.
Re: How Monero’s proof of work works
#18If 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-…
This was a super interesting read, and it highlights exactly the strength of cryptocurrencies. They turn game theory in their favor, so egoistic players (I don't mean this in an offensive tone) contribute to making it stronger and safer for everyone else. Thank you for sharing!
They kinda do - I'll admit honestly that the final game I played in the cryptocurrency space I played solely to profit. (It was a minor, uh, **coin that didn't have a lot of redeeming value to start with). Though it turns out the incentives remained somewhat aligned: I ended up providing the developer with some security bug fixes to make sure someone couldn't mess with the cash cow. :)
(To be clear: We were just optimizing mining; in the process of looking for ways to mine it faster, I found some security bugs and fixed them. We weren't exploiting the bugs, that crosses a line for me.)
Re: How Monero’s proof of work works
#19I 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.
Re: How Monero’s proof of work works
#20Earlier quoted context omitted.
Absolutely true, no one needs monero when you can have bitcoin (and lightning for private instant bitcoin payments).
Lightning Network, ready in 18 months for the last 5 years! Lol.
I have used LN quite a lot for the last 3-4 years or so. Seems to work good enough for quite many use cases.