Re:Proof of burn: An alternative method for distributed cons...
by miguelrochefort on Monday January 15, 2018 @10:51AM
(#16151190)
I also came up with the idea of Proof of Burn last week.
This would be the ideal one-way upgrade path to a better crypto-currency, without the implications of a coin split (Bitcoin Gold, Bitcoin Cash, Bitcoin Diamond, etc).
Re:Proof of burn: An alternative method for distributed cons...
by contrarian_ on Monday January 15, 2018 @08:30AM
(#16150334)
> The idea would be that you want sellers to pay something to participate in the market
What? Why would you want to do that beyond covering expenses for scam prevention?
Re:Proof of burn: An alternative method for distributed cons...
by sillysaurus3 on Monday January 15, 2018 @08:35AM
(#16150367)
Trust level. If you see a seller advertise 1 teddybear for sale, and you know they burned 3 teddybears worth of coins just to offer you that first teddybear, you can be pretty certain they're not going to run off with your money.
On the other hand, if a new seller didn't spend anything, they could run off with your coins on the first transaction.
This isn't just theoretical; it's the central problem in most darknet markets.
Re:Proof of burn: An alternative method for distributed cons...
by lifeisstillgood on Monday January 15, 2018 @08:43AM
(#16150416)
And if they are participating just to build a sufficient level of trust before doing a runner, then you are saying there must be a ratio of "trust to stake" - maybe 1:1 at first maybe increasing - it would be interesting to know what market makers in stock exchanges run at - 1:10 or more?
Re:Proof of burn: An alternative method for distributed cons...
by wastewaste on Monday January 15, 2018 @11:50AM
(#16151610)
absolute non sequitur. I'd just think burning the stuff was mad destructive.
When I was thinking of how to set up a distributed marketplace, I came up with Proof of Burn myself.
The idea would be that you want sellers to pay something to participate in the market, but it's not fair for them to pay it to a central authority. So the solution is to burn some coins.
I should really put together the rest of the ideas into a whitepaper or something... There's a way to do a distributed marketplace in a fair and reliable way. There are a few people trying to do that currently, but most of them seem hung up on some weird design decisions.
Mainly you want to be able to see how many orders a seller has "in flight" at any given time. If 30 orders are placed, and the seller hasn't processed any of them, it's a good sign they're going to welch with the coins. The fact that certain currencies are publicly viewable (BTC for example) allows buyers to have those insights into sellers' activities in a distributed fashion.