How Monero’s proof of work works • Hacker News Board

Re: How Monero’s proof of work works

#241

Post by neilwilson » Wed, May 06, 2026, 10:30 AM UTC

matheusmoreira wrote: post #237

neilwilson wrote: post #221

Earlier quoted context omitted.

It's amazing this myth continues when the Bank of England debunked it in 2014. [0] [0]: https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/m...

So it's no longer "reserves", it's "capital requirements", "liquidity coverage ratios" or whatever else. Banks inverted the technical language. They don't literally loan out deposits anymore, now they just create loans out of nowhere. Except they still can't create loans out of thin air unless they have actual equity to back at least a fraction of those loans. They still can't create money unless they have... reserve…

Also the process is loans creates deposits creates equity.

What do you buy bank shares with? Bank deposits.

Re: How Monero’s proof of work works

#242

Post by killerstorm » Wed, May 06, 2026, 3:54 PM UTC

NooneAtAll3 wrote: post #189

killerstorm wrote: post #175

Earlier quoted context omitted.

How many bits is a gigabit?

are you selling or buying? it's binary, thus 2^30

All telecom standards use standard SI prefixes. E.g. 1982 Etherenet specification: http://decnet.ipv7.net/docs/dundas/aa-k759b-tk.pdf

> a data rate of 10 Megabits per second

> Data rate: 10 Million bits/sec

RAM modules have to have power-of-two size for technical reasons. These reasons do not apply to telecom, magnetic storage, etc. Has nothing to do with "binary".

Re: How Monero’s proof of work works

#243

Post by tomjen3 » Wed, May 06, 2026, 6:26 PM UTC

boldlybold wrote: post #155

tomjen3 wrote: post #114

I had hoped this would describe a system that did not use very large amounts of power. Sadly it does.

How can you have proof of work without consuming large amounts of power?

Thats what I am interested in - Etherium does it, and I believe Chia(sp?) does too.

Re: How Monero’s proof of work works

#244

Post by jimmydorry » Fri, May 08, 2026, 9:57 AM UTC

neilwilson wrote: post #222

jimmydorry wrote: post #170

Earlier quoted context omitted.

That's one method, but consider what happens when someone deposits a million dollars at a bank. This million dollars can be lent out to another person as a mortgage, and guess where that person accepts that money? That's right, a bank. That same 1 million dollars could be lent out to 10 different people, expanding the supply of money many times over. The only limit to this are the capitalisation ratios legislated and…

"This million dollars can be lent out to another person as a mortgage" It can't. It isn't. And it never has been. What banks do is provide liquidity against your collateral. You sell them a charge over your house (for example), and they give you a credit for it. That credit can then be passed on to other people. Banks are in the business of discounting. They don't take anything in and give it out to other people. [0]…

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