Section 1. Introduction
We are developing a new innovative crypto-currency provisionally called WorldWideCoin(WWC). Someone in our team insist on calling it NewBitCoin, thus the final name is up to your feedbacks.
The new crypto-currency has one significant innovation, i.e., replacing the traditional Proof-of-Work(POW)[1] or Proof-of-Stake(POS)[2]
system by the Proof-of-Serial-Work(POSW) system to provide network security. This new-type system can completely solve the current major problems in POW/POS system and exhilaratingly bring more important benefits. Considering that some crypto-currencies based on POS system call themself the 2nd generation crypto-currencies, we expect this new crypto-currency to be recognized as the 3rd generation crypto-currency in future.
Section 2. The disadvantages of the traditional POW/POS system
As people mentioned before, the cryptocurrencies based on POW system have the following major disadvantages that may cause bitcoin to be at risk:
(1) More and more meaningless energy consumption.
(2) Centralized mining pools[3] degrading the decentralization of Bitcoin.
Please see Fig.2(2014-01-10) for detail. This risk comes from an unexpected quarter.
(3) Tragedy of the Commons[4][5].
The crypto-currencies based on POS system almost all have the following major disadvantages:
(1) Only miner that owns enormous quantities of coins can have high likelihood of earning the transaction fee, which leads to inequity and also centralized mining.
(2) If one has plenty of coins and keeps them for a long time, he may have the ability to rewrite the block chain history.
(3) Centralized Checkpointing [6]
Section 3. What is the Proof-of-Serial-Work(POSW) system
Obviously, the POW system of bitcoin is designed to be in parallel, which means that the hashrate can easily be raised by increasing the number of the same machines. This is the root cause of meaningless energy consumption and brings no benefits to bitcoin network. In fact, we should rename the traditional POW system as Proof-of-Parallel-Work(POPW) system.
Contrary to the POPW system, the POSW system is restricted to only be in serial. As all MPI programers know, some types of algorithms cannot be implemented in parallel manners. It's amazing that those types of algorithms are excellent for bitcoin-incentive-system but inconvenient for almost other applications. Enlightened by the MPI programing, we redesigned the entire transaction-network and incentive-system.
The steps to run the POSW system at Node-X are listed as follows:
(1) Assuming Block-H is the latest local block, Node-X should first verify several previous blocks, for instance, from Block-A created by the Node-A with IP-A to Block-H created by the Node-H with IP-H.
(2) Node-X collects new transactions as a finite set S, and the cardinality of the finite set S is designated by N.
(3) From set S, only f(N) different types of blocks can be produced by Node-X to meet norms which are accepted by all honest nodes, and the function f(N) is adjustable and hard-coded into client software.
(4) Node-X works on calculating a POSW for each different block. Each POSW calculation is based on the hash of Block-H, etc. The time costed for one calculation merely depend on the performance of one CPU on this serial program and is momentarily designed to be about one minute for common CPUs. Therefore, only f(N) CPUs are effective to increase the computing speed of one node.
(5) Node-X chooses the best block which gives the most difficult POSW and broadcasts it to all nodes.
(6) Node-X receives the blocks from other nodes and accepts the block whose POSW is the most difficult one as the Block-I.
(7) Node-X verifies Block-I(later is OK) and works on creating the next block.
Section 4. Why the POSW system can solve the major problems of traditional POW/POS system and bring more benefits?
(1) The POSW system actually is one type of the generalized POW system but not the existing traditional POW system and thus of course have no problems merely occuring on the POS system.
(2) During the POSW calculations at one node, only f(N) CPUs are effective to increase the computing speed. Assuming the total number of nodes in the world is M, then the total number of effective CPUs will be limited to be no more than M*f(N). This means that the maximal energy consumption of the POSW network is finite and also can be adjusted by modifying the function f(N).
(3) There is still another way to increase the entire computing speed, i.e., increasing the number of nodes. This increase is useful and brings a benefit to the entire POSW network, that is, improving the network's stability, reliability and security.
(4) Centralized mining pools are not allowed because the maximal computing speed of each node is limited. And wonderfully, it makes everyone with a common PC and a well network connectivity have the potential to earn coins by creating blocks in the long run.
(5) Compared with the POPW-mining, the POSW-mining makes much larger profits and thus suffers a much weaker influence of the 3rd disadvantage of POPW system mentioned above.
Section 5. Announcement
(1) We want to spend more time extending the influence of this new crypto-currency and to attract more people for the public external tesing to prevent a 51% attack.
(2) As students, we don't have much personal effects to sell to afford the following expenses, i.e., the costs of several stable nodes which should be prepared for public external tesing and the final launch, the block explorer, the official website, the official forum, etc. From another point of view, this means that each donor will be one creator of this new crypto-currency.
(3)You can donate Bitcoin(BTC) to this project by sending them to the following address:
1GPk1Wv2TrwySuin9WU86texWEwdG8FQA9
(4) Our team can be reached via email at
newbtcmail@gmail.com (5) This poster will be updated with new notifications.
References[1] Satoshi Nakamoto, "Bitcoin: A Peer-to-Peer Electronic Cash System", 2009.
[2] Sunny King and Scott Nadal, "PPCoin: Peer-to-Peer Crypto-Currency with Proof-of-Stake", 2012.
[3]
https://blockchain.info/zh-cn/pools[4]
https://en.bitcoin.it/wiki/Tragedy_of_the_Commons[5]
https://bitcointalk.org/index.php?topic=6284.0[6]
http://en.wikipedia.org/wiki/Peercoin
