Author: ZmnSCPxj 2021-05-18 06:46:58
Published on: 2021-05-18T06:46:58+00:00
The proposal of deriving the hardness from capex instead of opex privileges those who have access to chip manufacturers/foundries. The creation of a new PoW algorithm hurts decentralization and complicates the process of building, distributing, and operating hardware at scale. Miners will continue to buy more chips, turning capex into de facto opex, pushing energy consumption upstream to the chip manufacturing process, and creating centralization pressure. The proposal creates a business model for those who sell this variety of chips but has transient effects. Energy consumption is foundational to the system, and proof-of-work is ultimately honest about its consumption of resources. All currency security derives from energy consumption, and everything eventually resolves down to proof-of-work. It is best to move towards a more direct proof-of-work than adding more complexity and coming up with something that is just proof-of-work with additional moving parts that can be jammed or hacked into.
Updated on: 2023-06-14T21:59:45.491748+00:00