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Author Topic: A quick idea, mining tokens  (Read 1038 times)
pizsk (OP)
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October 16, 2015, 09:16:09 PM
 #1

Hello, I'm not very knowledgeable, I just wanted to share an idea I had, just in case.

It is an idea against mining centralization.

The thought is that, instead of having only one difficulty, there would be multiple difficulties, each tied to a mining token. Each mining token has a difficulty which adjusts differently according to how often it solves the block. The total mining difficulty doesn't change. To solve the block, you must supply the token, and a hash under its difficulty. The token can be traded, like the currency (so it has a market of its own). Maybe, mining tokens would be generated as BTCs are, so that everyone can be a miner. The thought is that no matters how fast you mine, if you have X% of the mining token, you'll have X% of the rewards (in probability). It seems it would slow down the hashing rate, but there's still incentive to hash fast enough against attacks, for the token and BTC to keep its value.

This is the end of the idea. I couldn't debate, or develop more. I don't have the capacity to see if it makes sense, or is useful, or the danger it creates.

It is just something to consider, mining tokens. I didn't find it with search.

Thanks
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gmaxwell
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October 21, 2015, 08:44:46 AM
 #2

Step 1. Monopolize tokens
Step 2. Totally control system.
Step 3. Profit.

The reason Bitcoin is decentralized is not insignificantly because anyone can enter or leave at any time without permission.  You can close off attacks by requiring a permission system (even soft ones like modulating the difficulty) for mining of some kind or another, but you open up other ones.

And as you note, what you suggest would kill hashrate-- you don't describe a personal incentive to secure the system but rather an incentive to hope other people do while you sit back and enjoy the benefits. ... and if they don't? oh well-- you participating wouldn't make much difference, and it would just be more cost to you.
kingcolex
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October 21, 2015, 05:00:28 PM
 #3

Hello, I'm not very knowledgeable, I just wanted to share an idea I had, just in case.

It is an idea against mining centralization.

The thought is that, instead of having only one difficulty, there would be multiple difficulties, each tied to a mining token. Each mining token has a difficulty which adjusts differently according to how often it solves the block. The total mining difficulty doesn't change. To solve the block, you must supply the token, and a hash under its difficulty. The token can be traded, like the currency (so it has a market of its own). Maybe, mining tokens would be generated as BTCs are, so that everyone can be a miner. The thought is that no matters how fast you mine, if you have X% of the mining token, you'll have X% of the rewards (in probability). It seems it would slow down the hashing rate, but there's still incentive to hash fast enough against attacks, for the token and BTC to keep its value.

This is the end of the idea. I couldn't debate, or develop more. I don't have the capacity to see if it makes sense, or is useful, or the danger it creates.

It is just something to consider, mining tokens. I didn't find it with search.

Thanks
It wouldn't work for Bitcoin as it would be extremely controversial, require a hard fork, blending extra coins into the mix, and possibility of monopolizing certain tokens.

If you really think this idea has a future you could build an altcoin off it and try it out.
2112
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October 21, 2015, 06:16:48 PM
 #4

It is just something to consider, mining tokens. I didn't find it with search.
It was discussed earlier on this forum under the term "licensed mining".
By "earlier" I mean couple of years ago.

Please comment, critique, criticize or ridicule BIP 2112: https://bitcointalk.org/index.php?topic=54382.0
Long-term mining prognosis: https://bitcointalk.org/index.php?topic=91101.0
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