...
- Consensus Algorithms
- Needs to be Byzantine fault tolerant
- The systems is designed to reach consensus without necessarily having to talk to each other
- Proof of Work
- used by BitCoin and currently Etherium (etherium wants to change)
- A node has to guess the Nonce to write the block
- The reward is currently about 12 bit coins
- This is referred to as mining
- The more hardware on the network the more difficult it is to guess the number
- This is wasteful of energy and resources as farms of hardware are used to guess the random numbers
- costs roughly $400million world wide
- Proof of Stake
- Etherium will move towards using this
- Rathering finding a nonce, it uses a system of betting
- costs about $1million to setup a node plus
- The block that gets voted on the most is injected into the chain
- any fees associated with this block are split amongst the validators that bet on it
- Creates a situation where there are only a few validator nodes, because of the costs
- Because of the smaller number of nodes, it makes it more susceptible to discovery and attack
- Value and Volatility
- What determines value?
- In traditional systems currency created by a centralized authority
- With the blockchain individuals can create currency
- value determined by market
- Last year's market cap for all blockchains is $146.2B
- Banks in Canada are increasingly de-risking blockchain currencies, making it harder to transfer to your bank account.
- Token value determinants by William Mougayar:
- These currencies are digital fiat currencies with nothing tangible backing them
- Because of this they are only fuelled by speculation
- this volatility is a barrier to real world use
{"serverDuration": 135, "requestCorrelationId": "abc0d7f3827a21f2"}