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1  Alternate cryptocurrencies / Altcoin Discussion / Which Proof of Stake System is the Most Viable on: April 25, 2014, 08:15:41 PM
    There has been a lot of discussion lately on whether or not proof of stake is a feasible substitute for proof of work. I have come to believe that it is a necessary progression of the crypto currency space toward consensus systems that do not involve arbitrary work and artificially valuable resources. Proof of stake, as I see it, is a step in that direction. Of all the proof of stake coins/projects, I found three thoroughly documented approaches to solving issues associated with distributed consensus - PeerCoin, Nxt, and Bitshares. Each project has its on merits as well as shortcomings. I put it to the community to vote and discuss on which approach has the best promise.

    The relevant white papers are as follows:

Abstract:
Quote
A peer-to-peer crypto-currency design derived from Satoshi Nakamoto’s Bitcoin.
Proof-of-stake replaces proof-of-work to provide most of the network security.
Under this hybrid design proof-of-work mainly provides initial minting and is
largely non-essential in the long run. Security level of the network is not
dependent on energy consumption in the long term thus providing an energyefficient
and more cost-competitive peer-to-peer crypto-currency. Proof-of-stake
is based on coin age and generated by each node via a hashing scheme bearing
similarity to Bitcoin’s but over limited search space. Block chain history and
transaction settlement are further protected by a centrally broadcasted checkpoint
mechanism.

Abstract:
Quote
Bitcoin has proven that a peer-to-peer electronic cash system can indeed work and fulfill payments processing without requiring trust or a central mint. However, bitcoin has several shortcomings that prevent it from becoming the basis of an electronic economy. In order for an entire electronic economy to be based on a peer-to-peer solution, it must be able to do the following:
Process thousands of transactions, quickly
Provide a means for generating income
Practical means for adding new features
Be able to run on mobile devices
NXT satisfies all these requirements and additionally eliminates the Ghash arms race that bitcoin's proof of work requires. NXT is based on 100% proof-of-stake and this required an initial distribution to be made. While many are not comfortable with the specific initial distribution of the genesis block, when asked: "How would you solve problem with scam accusations according to "unfair" distribution NXT to 73 big stakeholders?", BCNext answered: "This problem can not be solved. Even if we had a million stakeholders the rest seven billion people would call this unfair. A world with the money can not be perfect".[1]
The fundamental improvement of NXT is Transparent Forging. This is the key innovation of NXT that allows it to process thousands of transactions per second.


Dpos Abstract:
Quote
This paper introduces a new implementation of proof of stake that can validate transactions in seconds while providing greater security in a shorter period of time than all existing proof of stake systems. In the time it takes Bitcoin to produce a single block a DPOS system can have your transaction verified by 20% of the shareholders and by the time Bitcoin claims the transaction is almost irreversible (6 blocks, 1 hour) your transaction under DPOS has been verified by 100% of the shareholders through their delegates.
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2  Other / Beginners & Help / 2136? on: July 01, 2013, 07:56:57 PM
What happens to the network when all bitcoins have been mined?
3  Other / Beginners & Help / NMC on: May 01, 2013, 04:48:28 PM
What are the merits of namecoin and why is it increasing in price relative to bitcoin?
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