http://www.coinssource.com/coin-magi-a-cpu-miners-dream-proof-of-mining-pos-ii/One of the most important ideologies behind cryptocurrencies is its ability to be fair, whether it be Bitcoin and its blockchain or its respective side-chain technologies. The overall demand for this “fair” attribute has driven many developers towards finding new and innovative ways of further improving the original transparency offered by Satoshi Nakamoto through the Bitcoin platform.
To give this notion a digital currency perspective, let us look at the original Proof of Work concept developed for Bitcoin. In its early stages, the Bitcoin blockchain was mineable with the use of CPU’s only – the processor within a computer. This, however, changed as the market matured, demand grew and the technology adapted. With this, we witnessed the introduction of GPU miners — using the computer’s graphics card/s — that were much more efficient at doing the work, so CPU miners became obsolete.
The introduction of ASIC miners had the same effect on GPU miners, as they were specifically designed to mine the Bitcoin SHA-256d algorithm. Now, to look at the PoW scenario again, this time with the understanding that we have gained through the trials and errors of Bitcoin and its partner platforms, we may start to see some unfair results. This is where a new crypto hero by the name of Magi has stepped into the scenes, with the aim of restoring the balance between advanced miners and those with smaller resources.
To put this in simple terms, imagine if you were fishing at a lake with a limited number of fish and everyone else that joined did so with a standard rod. What if suddenly people came to the same place with large fishing nets, boats with sensors, and other larger fishing equipment? It would be very easy to see the unfair advantage gained by those with larger and more efficient equipment. This is the same result that the traditional Proof of Work system would produce for regular miners.
Now, imagine that after some time, the fish evolved to a point at which they would sense the larger fishers arriving and would try to hide from everyone, leaving only a few to be caught. Using this analogy, we can see that the only reasonable method to fish would be using the standard fishing rods, as they would not trigger the fish to go into hiding. As a result, the only way to gain more fish is to bring more people to the lake; rather than bringing larger and more efficient equipment. That is where Magi has taken the leap!
A Truly Fair Digital CurrencyThere are some issues the community has come to face with the original PoW and its rewarding system that is implemented in almost all other PoW-based coins. For one, it favors the early adopters with a much higher payout than those that join the network later on. Secondly, as greater mining hardware was introduced to the market, the less power the outdated miners had. This was as a result of mining farms — a large group of computers put together for mining purposes — backed by large budgets that can at times dominate the mining aspect of a coin.
Magi, on the other hand, has learned from the mistakes of such systems and has introduced its own special rewarding system and its own unique PoS II. It is also of great importance to note its M7M algorithm, which is only mineable with a CPU at this stage. You may start to see the benefits of this algorithm, as the previously outdated mining hardware can now be put to good use. Magi has this proven to be a much more fair platform for miners, as mentioned by a senior Bitcointalk member:
There have also been numerous positive comments left by respected members in relation to the rewarding system and the integrity of being CPU-only:
Unique Algorithm and Awarding SystemThis appraisal is due to its highly calculated rewarding system and overall algorithm, designed by the Magi developer and founder, Joe Lao. As a scientific researcher, Joe has taken the time to bring something really special to this environment.
The M7M algorithm was introduced to overtake the originally proposed M7 algorithm and limit the possibility of GPU miners taking over the existing CPU miners. This was due to the sequential nature of this algorithm that favors CPUs as they work sequentially, as opposed to GPU mining, which works in parallel. As mentioned on the Nvidia website:
Furthermore, the rewarding system has been strategically designed to favor all miners; not just a few. There is an equilibrium point where the hash rate and block rewards are balanced to produce the most optimal outcome for all miners. As the hash rate increases, the rewards are reduced to encourage fair mining, thus greatly lowering the possibility of a blockchain mining monopoly. As mentioned in the published research paper, written by Joe Lao:
The Magi PoS II system also ensures that people with the largest share of coins in circulation do not have an unfair advantage over those with smaller holdings, by limiting the coin maturity based on the percentage of XMG held.
Strong Foundation for Future DevelopmentMagi was launched on the 15th of September after thorough testing, with only 25,000,000 XMG to be mined through its blockchain. Magi has since risen from its average November price of 0.00002200 BTC on the Bleutrade BTC/XMG market to reach heights of 0.00006000 BTC on November 14th. It is currently being traded on the Bittrex market for 0.00003963 BTC.
As this coin has a limited mining method, we can be assured that it is currently protected from large accumulation and sells that is often seen with other coins. This platform has great potential to rise above the crypto ladder and set a new standard on mining standards and fair distribution through a fully decentralized platform.
I love XMG. THANK YOU VERY MUCH
