Steemit Publication Date 9-6-2018
What is Proof of Work and How Does it Work?
Proof of work is powerful. POW is the original consensus in the Blockchain network. This is how transactions on the chain are confirmed. Confirmations rely on nodes, which rely on mining.
An immense amount of computational power is required to solve the algorithms that create consensus. One piece is the Hash Function, better known as how to find an input from a known output. An integer factorization, too; how to present a number as a product of two other numbers.
The answer to a proof of work ‘math problem’ is called a hash. As the Blockchain network grows, it requires more and more hash power to solve an increasing number of equations. This creates some difficulty. BLUF: Accurate work and speed of Blockchain systems depend on Proof of Work, the block generation. Easy problems leave too many vulnerabilities, which is why the algorithms must be complex. This prevents spam, DDoS, theft. And this is why transparency is of utmost importance.
Proof of Work relies on transparency of the work being done. A hash of each block contains the hash of the previous block to increase security. Miners use enormous energy solve these puzzles and generate new blocks. These are considered and confirmed. The most famous application of POW is Bitcoin.
#HASHCASH (Respect to Dr. Adam Back)
Bitcoin offers POW every ten minutes. Can you imagine how much money and time it would entail to try to corrupt this enormity? Ha! Currently no one owns 51% or a great majority of the Block power. If that ever did happen, a 51% attack could create transaction reversal. The importance of a decentralized network is to avoid such large majority ownership.
Is this actually harmful to the environment? Is PoW better than PoS? Comment!
Hence the power of long term thinking.
What is KYC? Why is it relevant to crypto currency investors?
For starters, KYC, otherwise referred to as Know Your Customer, is what businesses use to verify the identity of their customers. This applies in regulated environments and is now heavily used during ICO phase investments.
The KYC setup is actually a product of the Patriot Act and is meant to ensure an investor’s avoidance of corruption, bribery, money laundering or other incendiary white-collar crime. Banks use KYC to combat illegal activity. What information is surrendered to KYC? Before you engage you should know. Information such as names, social security numbers, passport numbers, birth dates, addresses, phone numbers and citizenship status are used in the KYC process.
Additionally, there is a cross-comparison to monitor sanctions, high risks or political exposure. The data collected are utilized to form groups of investor types that can be more easily monitored.
In short, while it feels like a complete invasion of privacy, there is perhaps a substantial safety net created for all investors involved. Applications are broad and absolutely impact Initial Coin Offerings (ICO) as well as fiat transactions.
ETF Delay, Drama, Saga
GASP. A Bitcoin ETF? Yes, it is coming. According to outstanding BTC expert Andreas Antonopoulos, it is “Inevitable but Damaging”. According to the author of ‘Mastering Bitcoin’, the long term future for Bitcoin ETF models is going to happen, but he explores what will happen when BTC held in a reserve is sold in representative paper shares to reflect the price of Bitcoin.
In other words, shareholders have paper BTC to make emotions high, but there is no actual Bitcoin. This sounds like a fleecing for those awaiting BTC ETF funds to open. Additionally, it presents speculators an opportunity to participate in the crypto market without actually being vested directly in it.
The result, says Antonopoulos, would be an immediate price surge (that’s good if you’re a current HODLER), a broader market for entry, leading perhaps to further adoption. But…
What about the long term implications? The generational effect? Featuring this fake centralization in a present market can in fact manipulate prices and valuation, but more critically, investors with no keys will be making decisions on behalf of the Bitcoin ecosystem. This translates to a loss of the decentralization and democratization we all know and love in Crypto Space.
What are your perceptions? This is, of course, going to affect us all.
The Meister Visited Boise & Offered Stupendous Reminder of the Power of HODL
Is diversification in crypto assets really a best practice? We were fortunate to engage that conversation with Adam Meister back in August.
If you follow the BitcoinMeister on YouTube or Steemit, you know he is a One Bitcoin Man. Loyal to the power of the Bitcoin economy and an individual who values his wealth in Bitcoin. Followers hear that often.
Bitcoin is the most predictable crypto, a debatable point among some. It is the original and has the longest history of performance, use and application in the New Money System.
According to Adam, Predictability is a Strength and that is what makes Bitcoin so alluring. The lightning network will have tremendous impact on the ecosystem. Coin rankings can be incredibly distracting and with all the hubbub around new altcoins and ICOs, it is increasingly easy to lose sight of the original mission and vision of what Bitcoin is and why it was created. The beautiful thing is that long term thinking. Results matter and over close to ten years, Bitcoin has proven strength, proven itself useful and it has improved the lives of formerly disadvantaged populations. With a finite supply, there is certainly a tangible value.
If you’re interested in maximal Bitcoin enthusiasm, entertaining the idea and debate of timing your own entrance to the market, or if you doubt the power of One Bitcoin, be sure to follow the Bitcoin Meister. If you do, there are all sorts of tutorials and any manner of crypto wares and discounts for affiliate sites and products. You will not be disappointed.
BURST Goes Solar
-Courtesy, Tamara Sanchez(BURST)
BURST has been around since 2014. It was a fork of NXT, which utilized Proof of Stake. The original developers implemented Proof of Capacity as the consensus algorithm, then announced it. Its use of PoC allows anyone to start mining with spare hard drive space (sort of like BOINC). This lowers the entry point for anyone to begin mining, eliminating some of the hurdles seen by Proof of Work coins BTC, ETH and XMR. Burst has gone under the radar for a couple years, with the volunteers intently focusing on the viability of their open space and open source project.
Without the financing of other projects and large coins on the market, crowdfunding and application development for Burst are central. The modus is to employ ease of use for consumers and small businesses. Along with their commitment to building a community, Burst volunteers hold classes that educate individuals about Blockchain development applications and they assist local non-profits as such. You can follow or learn more via the Burst twitter channel @Burstcoin_dev
DISCLOSURE: We are not financial advisors. We are merely a group of enthusiasts sharing information and educational resources. Your investments and participation in crypto currency are yours. We cannot advise, buy, sell, trade on your behalf. We cannot offer trading tips, we can simply share our own perspectives and we cannot be held liable for your personal investment in any digital asset. “The primary mission of this group is to on-board people and businesses into the cryptocurrency space. We encourage all levels and backgrounds to participate and we are eager to teach and learn. Our meetings focus on educating the general population about benefits of cryptocurrency and its applications to the modern world.
*authored by CD Wyatt (steemit.com/@cdwyatt)