Author: John Bodeen 2015-05-07 16:54:35
Published on: 2015-05-07T16:54:35+00:00
There is a concern that increasing the block size in Bitcoin could lead to centralization. However, there is a possibility of developing an application that rewards decentralized storage of block data, which can be built on or aside from the existing Bitcoin protocol. The Permacoin paper by Andrew Miller explores this idea. The paper proposes a method for repurposing Bitcoin mining resources for distributed storage of archival data, with incentives that encourage storage of redundant data. This could help reduce the need for trust in centralized cloud storage providers. Overall, the idea of rewarding decentralized storage of block data offers a potential solution to the centralization problem in Bitcoin.
Updated on: 2023-06-09T19:32:59.416213+00:00