• 3 Posts
  • 33 Comments
Joined 4 years ago
cake
Cake day: November 26th, 2020

help-circle








  • She makes it sound so multi faceted that I don’t think she really understands. Just think of it as the ryanair effect, but on a larger scale. Once a low cost low quality seller enters the market, it will steal all the sales, because buyers can’t judge the difference in quality but they can in price. This forces all settlers to reduce quality.

    The solution is forcing sellers to either provide guarantees or publish info on quality.













  • Proof of work isn’t a necessary part of it. You need to answer the question “how does money get created”. Proof of work is a very robust way to create and allocate new money. Fiat currencies just answer " i nominate one entity who is allowed to create as much money as he likes”. Other answers are possible.

    It’s also possible to use a proof of work algorithm which doesn’t consume much energy. The usual proposal is for a “proof of doing work and allocating RAM and storing something on disk”. Bitcoin just chose the most robust and simplest algorithm, which does consume a lot of energy.

    In a future currency, the proof of work algorithm could allocate money to people who sequester carbon or plant trees. The thing about inventing a new type of money is that you can do anything. Bitcoin is a great leap of progress for humanity, but has a couple of flaws. Those flawed features can be reinvented, while still keeping all the benefits.