The CEO of Spacemesh, Tomer Afek, has argued that the centralization in both proof-of-work and proof-of-stake protocols is contrary to the decentralized ideals of the bitcoin and Blockchain movement. Afek highlighted that only two Bitcoin Mining Pools control over 50% of the network’s hashrate, while the top five pools control over 75%. The concentration of mining power among a few players means that these centralized actors are not held accountable. This situation is even worse in protocols that use the proof-of-stake mechanism, where a small group of inside investors and team members control the majority of coins and, therefore, have undue influence over the network.
The competitive nature of proof-of-work mining is often overlooked, according to Afek. Miners race to solve a cryptographic puzzle and mine the next block, leading to centralization and consolidation of mining resources. With the requirement of a single winner for every block interval, congested block space and high transaction fees for users become inevitable. However, Afek believes that anyone with a computer and storage space should be able to participate in a network’s consensus process, without the need to join a mining pool or outsource trust to a pool operator.
According to Afek, proof-of-work and proof-of-stake protocols have failed to live up to the original idea of decentralized blockchains. Bitcoin, for example, has seen a worrying trend towards centralization, with only a few pools controlling the majority of hashrate. In proof-of-stake chains, a small group of investors and team members control the majority of coins, stake, and influence over the network. Even Ethereum, which recently abandoned proof of work, is subject to growing centralization due to economies of scale.
Spacemesh, a company that spent five years in research and Development before going live in July, aims to make mining from home accessible and economically sustainable for ordinary Internet citizens. They have developed a suite of protocols and technologies, including a hybrid consensus mechanism called proof of space time, which combines the permissionlessness of proof of work with the Energy Efficiency of proof of stake. The key innovation of Spacemesh is the mesh topology, where many miners collaborate to produce each block, instead of competing against each other.
Allowing anyone with a computer and storage space to participate in the network’s consensus process can lead to a resurgence in crypto mining. Spacemesh has already seen this in action, with a community of home miners who have dusted off their old mining gear to participate. This approach promotes fairness and accessibility for home miners and is more relevant today than ever.
In summary, the centralization in both proof-of-work and proof-of-stake protocols contradicts the decentralized ideals of the bitcoin and blockchain movement. The concentration of mining power among a few players and the control of coins by a small group of investors and team members undermines decentralization and poses risks to the network. However, companies like Spacemesh are working towards making mining accessible and economically sustainable for ordinary Internet citizens through innovative protocols and technologies. Allowing anyone with a computer and storage space to participate in the network’s consensus process can lead to a resurgence in crypto mining and promote fairness and accessibility..
#Centralized #Mining #Pools #Antithetical #Ideals #Gave #Rise #BTC #Blockchain #Movement #Tomer #Afek
The competitive nature of proof-of-work mining is often overlooked, according to Afek. Miners race to solve a cryptographic puzzle and mine the next block, leading to centralization and consolidation of mining resources. With the requirement of a single winner for every block interval, congested block space and high transaction fees for users become inevitable. However, Afek believes that anyone with a computer and storage space should be able to participate in a network’s consensus process, without the need to join a mining pool or outsource trust to a pool operator.
According to Afek, proof-of-work and proof-of-stake protocols have failed to live up to the original idea of decentralized blockchains. Bitcoin, for example, has seen a worrying trend towards centralization, with only a few pools controlling the majority of hashrate. In proof-of-stake chains, a small group of investors and team members control the majority of coins, stake, and influence over the network. Even Ethereum, which recently abandoned proof of work, is subject to growing centralization due to economies of scale.
Spacemesh, a company that spent five years in research and Development before going live in July, aims to make mining from home accessible and economically sustainable for ordinary Internet citizens. They have developed a suite of protocols and technologies, including a hybrid consensus mechanism called proof of space time, which combines the permissionlessness of proof of work with the Energy Efficiency of proof of stake. The key innovation of Spacemesh is the mesh topology, where many miners collaborate to produce each block, instead of competing against each other.
Allowing anyone with a computer and storage space to participate in the network’s consensus process can lead to a resurgence in crypto mining. Spacemesh has already seen this in action, with a community of home miners who have dusted off their old mining gear to participate. This approach promotes fairness and accessibility for home miners and is more relevant today than ever.
In summary, the centralization in both proof-of-work and proof-of-stake protocols contradicts the decentralized ideals of the bitcoin and blockchain movement. The concentration of mining power among a few players and the control of coins by a small group of investors and team members undermines decentralization and poses risks to the network. However, companies like Spacemesh are working towards making mining accessible and economically sustainable for ordinary Internet citizens through innovative protocols and technologies. Allowing anyone with a computer and storage space to participate in the network’s consensus process can lead to a resurgence in crypto mining and promote fairness and accessibility..
#Centralized #Mining #Pools #Antithetical #Ideals #Gave #Rise #BTC #Blockchain #Movement #Tomer #Afek