@Grzegorz ZiemoΕski Not all Blockchain technologies are consuming vast amounts of resources to run their network.
Proof Of Work blockchains like bitcoin certainly do waste a lot of energy but because of this there has been a turn away from it to other blockchain technologies like Proof Of Stake (POS), Delegated POS and many others that are 100% more energy efficient.
Nice, very eco aware question Grzegorz. I like the idea behind Bitcoin but I hate its implementation. It's slow, expensive and centralized. The same must apply for every other PoW blockchain due to their nature, incentives.
The security is based on power and block rewards which always leads to centralization and waste. Everybody can do what they want but I only support XRP as a payment option and this is one of the reasons why.
What is preserving bitcoin's value? At some point if Bitcoin-maximalist enthusiasm fades, the whole currency goes to zero, right?
In terms of proof of work, did bitcoin folks see some of these problems coming and decide it was worth it despite, or were the problems bigger than the community anticipated?
Well, I will just state my opinion as there is no 1 truth to this question.
Just releasing my frustration
Honestly, first, it makes me so sad everybody knows only about bitcoin. BTC is really not that useful but I am sure that will change when the hype drops and people will study the problem/industry more. I am not referring to you specifically now, you have a very valid question but to all the media. I just wanted to point that out, DO YOUR RESEARCH everybody who will ever read this comment :)
What preserves BTC value
BTC started as a payment system but due to the complexity of PoW (proof of work), it became a "store of value", as it's too expensive to move it haha. Ah, I am so biased lol. But is true, a transaction (change in a variable state) costs several $. So you can't really send 10$ to a friend because it will cost you 20$, depending on the network stress.
Will it drop to 0? IDK, maybe it will go to "the moon", I only pay attention to protocols that produce direct value, HAVE A DAY-TO-DAY UTILITY such as Ethereum or XRP.
Why PoW
I am not sure if they see it coming or not, I think developers being developers, may seen it coming, but was too interesting to develop it anyway. Or, the same may have happened like with energy sources. As humans, we started with non-renewable sources because we comprehended them first, now we are transitioning to renewable sources like solar energy as we matured. You must start somewhere I guess.
In the recent months, there is a lot of migration towards PoA (proof of authority) or for example PoS (proof of stake) consensus. In my company, we are using PoA since beginning of 2017 and the difference in speed is noticeable but you must have proper tools in place to don't betray the original, main purpose of blockchain, decentralization.
Sure, long story short, you setup a bunch of trusted Validator Nodes (authorities) with the sole purpose of receive incoming transactions from computers of the network and put them to a block. Which is different from PoW, because not everybody can become a Validator.
Example, Ripple UNL. There are validator nodes from community, from banks, from company itself, from exchanges etc. And they actually do not have any incentive ("block reward") to be a validator. They do it just to contribute to the P2P world. Which I find very pure and how it should be. You could also make PoA Validator nodes to receive rewards to cover their energy costs, also fine IMO as powerful servers are expensive.
Ethereum is also developing several PoA test networks. Such as Rinkeby which one I explain in my course and teach students how can they connect to this test network.
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What's your stand on the environmental impact of blockchain-related technologies?
@Grzegorz ZiemoΕski Not all Blockchain technologies are consuming vast amounts of resources to run their network.
Proof Of Work blockchains like bitcoin certainly do waste a lot of energy but because of this there has been a turn away from it to other blockchain technologies like Proof Of Stake (POS), Delegated POS and many others that are 100% more energy efficient.
Nice, very eco aware question Grzegorz. I like the idea behind Bitcoin but I hate its implementation. It's slow, expensive and centralized. The same must apply for every other PoW blockchain due to their nature, incentives.
The security is based on power and block rewards which always leads to centralization and waste. Everybody can do what they want but I only support XRP as a payment option and this is one of the reasons why.
Do you think the power consumption will still be huge after ETH implementing POS ?
Hey Deepu, thx for question. I think it will get to the point it will not be such a problem but different moral questions will be challenged.
What is preserving bitcoin's value? At some point if Bitcoin-maximalist enthusiasm fades, the whole currency goes to zero, right?
In terms of proof of work, did bitcoin folks see some of these problems coming and decide it was worth it despite, or were the problems bigger than the community anticipated?
Well, I will just state my opinion as there is no 1 truth to this question.
Just releasing my frustration
Honestly, first, it makes me so sad everybody knows only about bitcoin. BTC is really not that useful but I am sure that will change when the hype drops and people will study the problem/industry more. I am not referring to you specifically now, you have a very valid question but to all the media. I just wanted to point that out, DO YOUR RESEARCH everybody who will ever read this comment :)
What preserves BTC value
BTC started as a payment system but due to the complexity of PoW (proof of work), it became a "store of value", as it's too expensive to move it haha. Ah, I am so biased lol. But is true, a transaction (change in a variable state) costs several $. So you can't really send 10$ to a friend because it will cost you 20$, depending on the network stress.
Will it drop to 0? IDK, maybe it will go to "the moon", I only pay attention to protocols that produce direct value, HAVE A DAY-TO-DAY UTILITY such as Ethereum or XRP.
Why PoW
I am not sure if they see it coming or not, I think developers being developers, may seen it coming, but was too interesting to develop it anyway. Or, the same may have happened like with energy sources. As humans, we started with non-renewable sources because we comprehended them first, now we are transitioning to renewable sources like solar energy as we matured. You must start somewhere I guess.
In the recent months, there is a lot of migration towards PoA (proof of authority) or for example PoS (proof of stake) consensus. In my company, we are using PoA since beginning of 2017 and the difference in speed is noticeable but you must have proper tools in place to don't betray the original, main purpose of blockchain, decentralization.
Can you explain proof of authority?
Sure, long story short, you setup a bunch of trusted Validator Nodes (authorities) with the sole purpose of receive incoming transactions from computers of the network and put them to a block. Which is different from PoW, because not everybody can become a Validator.
Example, Ripple UNL. There are validator nodes from community, from banks, from company itself, from exchanges etc. And they actually do not have any incentive ("block reward") to be a validator. They do it just to contribute to the P2P world. Which I find very pure and how it should be. You could also make PoA Validator nodes to receive rewards to cover their energy costs, also fine IMO as powerful servers are expensive.
Ethereum is also developing several PoA test networks. Such as Rinkeby which one I explain in my course and teach students how can they connect to this test network.