The Imminent Decentralized Computing Revolution

Re:The Imminent Decentralized Computing Revolution by jaekwon on Sunday October 12, 2014 @08:43PM (#8447074)

There are two ways to secure the blockchain with a guaranteed level of security. Proof-of-work, and proof-of-stake. I use the second term very broadly, and I'm not referring to the consensus schemes that NXT or BitShares use. Anybody who says otherwise today regardless of the "marketcap" of their coin doesn't know what they're talking about from a CS/game-theory point of view, or they're ignoring the costs of proof-of-work schemes.

Proof-of-work is expensive and will ultimately be replaced with better consensus schemes that require no mining, namely those that only rely on cryptographic signatures, a good balance of incentives and penalties, and an underlying byzantine consensus algorithm.

Disclaimer: I'm one of a handful of people working on new consensus algorithms.

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Re:The Imminent Decentralized Computing Revolution by woah on Sunday October 12, 2014 @09:27PM (#8447154)

Proof of stake, while probably achievable technically within the next few years, has a major incentive problem. Anyone can show up and start mining a proof of work coin, and earn some. In contrast, all coins ever available in a proof of stake system must be given out by someone at some point. Most people distrust a system that claims to be decentralized, but has a central group or person giving out all tokens that will ever exist at the beginning.

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Re:The Imminent Decentralized Computing Revolution by wmf on Monday October 13, 2014 @12:12AM (#8447455)

You have to buy hardware to mine. Arguably buying stake directly is simpler.

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Re:The Imminent Decentralized Computing Revolution by tg3 on Monday October 13, 2014 @03:50AM (#8447854)

Simpler probably, but unless you can buy stake from anyone (like you can with hardware), it lacks the same decentralized advantages.

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Re:The Imminent Decentralized Computing Revolution by wmf on Tuesday October 14, 2014 @05:47PM (#8456018)

In the Bitcoin world there are multiple exchanges and multiple ASIC vendors. Any healthy ecosystem should have multiple exchanges.

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Re:The Imminent Decentralized Computing Revolution by eric_bullington on Sunday October 12, 2014 @08:46PM (#8447080)

What proof-of-stake blockchain is presently working and stable without checkpoints?

Are there any (serious question)?

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Re:The Imminent Decentralized Computing Revolution by jaekwon on Sunday October 12, 2014 @08:52PM (#8447091)

None are working yet. They're being developed. No centralized checkpoints.

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