Hey everyone,
Check out our latest blog post that contributes to the Consensus methods debate.
We went through the pros and cons of the Proof of Work and the Proof of Stake mechanisms and explained why æternity counts on the Bitcoin-NG consensus algorithm paired with the Cuckoo Cycle hashing algorithm.
Best regards,
The AE Team
It is time to revisit this post from august 2018.
It is a reality that GPU mining is a thing, the majority of the miners are split between 3 pools and that there is no way to mine in commodity hardware at all.
There is a point in the publication where it is said that staking would split the group between rich accounts and poor accounts, but the reality is that right now we are split between miners that invest hardware and electricity and most likely perfor “hit and runs” and holders that have absolutely no way to get more AE without having to compete against those groups.
The document also said that Bitcoin was unlikely to move away from POW precisely because of the miners, and right now we are on the same boat. That was shortsighted at best.
Miners “hit and run” (for those of you wondering) is a miner that would mine AE, get the reward and sell it immediately. Some people will argue that this is not bad because it makes more coins available, but this would also mean there are more coins, more supply, and thus make your current coins worth less with little to no impact to the miner, so besides having the hardware and investing their electricity cost, they have no “stake” in the coin other than making a profit. Most miners will switch from one coin to another depending on which one yields more earnings.
This can be solved by fullfilling what was promised in the original whitepaper a way for commodity hardware to mine the coin. Either by allowing staking rewards or by switching the miner program to help decentralize the mining.
So your vote could be:
Please feel free to discuss this in the telegram or here and then go to the Base Aepp to cast your vote.
Happy staking!