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Author Topic: bitcoin\ethereum problem .. Towards A Scalable protocol -- MIT EXPERTS  (Read 138 times)
lineups (OP)
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July 22, 2019, 04:55:59 PM
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On one hand, the POW' consensusesare computationally expensive. According to the latest BitcoinEnergy Consumption Index, Bitcoin miners from all over theworld consume over 70TWh of electricity every year to dothe proof of work [8]. This is obviously not suitable for IoTscenarios with limited and light-weighted computation. Onthe other hand, the processed transactions per second (TPS)of the mainstream BC platforms like Bitcoin and Ethereumare very limited, because the single chain of blocks is linearand blocks cannot be created simultaneously. For example,one Bitcoin block takes 10 minutes to be created and addedto the main chain, which is very inefficient and fails to meet the requirement of instant transaction in IoT and main stream adaption .
"This isn't the kind of software where we can leave so many unresolved bugs that we need a tracker for them." -- Satoshi
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July 25, 2019, 10:50:46 AM
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Like BTC even ETH is also Public Permissionless blockchain technology and Ethereum supports Smart contract and implements Turing completeness.

Few lines from Whitepaper
Quote
Lack of Turing-completeness - that is to say, while there is a large subset of computation that the Bitcoin scripting language supports, it does not nearly support everything. The main category that is missing is loops. This is done to avoid infinite loops during transaction verification; theoretically it is a surmountable obstacle for script programmers, since any loop can be simulated by simply repeating the underlying code many times with an if statement, but it does lead to scripts that are very space-inefficient. For example, implementing an alternative elliptic curve signature algorithm would likely require 256 repeated multiplication rounds all individually included in the code.

Value-blindness - there is no way for a UTXO script to provide fine-grained control over the amount that can be withdrawn. For example, one powerful use case of an oracle contract would be a hedging contract, where A and B put in $1000 worth of BTC and after 30 days the script sends $1000 worth of BTC to A and the rest to B. This would require an oracle to determine the value of 1 BTC in USD, but even then it is a massive improvement in terms of trust and infrastructure requirement over the fully centralized solutions that are available now. However, because UTXO are all-or-nothing, the only way to achieve this is through the very inefficient hack of having many UTXO of varying denominations (eg. one UTXO of 2k for every k up to 30) and having O pick which UTXO to send to A and which to B.

Lack of state - UTXO can either be spent or unspent; there is no opportunity for multi-stage contracts or scripts which keep any other internal state beyond that. This makes it hard to make multi-stage options contracts, decentralized exchange offers or two-stage cryptographic commitment protocols (necessary for secure computational bounties). It also means that UTXO can only be used to build simple, one-off contracts and not more complex "stateful" contracts such as decentralized organizations, and makes meta-protocols difficult to implement. Binary state combined with value-blindness also mean that another important application, withdrawal limits, is impossible.

Blockchain-blindness - UTXO are blind to blockchain data such as the nonce, the timestamp and previous block hash. This severely limits applications in gambling, and several other categories, by depriving the scripting language of a potentially valuable source of randomness.

I think converting from BTC to ETH can save some power issue and the above mentioned things as well.
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