6.04.2018

Claim Consensus: Another example application of Bid consensus

Here is another example of how bid consensus (claim consensus) can be used.

A minimum chain length is required to claim a coin and this claiming can be permanent if desired.  So lets say for example this length requirement is 1000.  So you can start mining a coin and when you hit a blockchain of 1000 blocks (or more) for it then you post this chain to the consensus layer.  There may or may not be a "bidding time" and/or "verifying time" set starting when you post your 1000+ blockchain that gives others an opportunity to verify your chain and for others to post a longer chain if they want to bid against you for ownership.  Now there can be multiple consensus layers and they can have different requirements for claiming coins, but as long as they don't change the algorithm and rules then your blockchain for coin claiming will still be valid, but may or may not be sufficient depending on how long of a blockchain they require.  And this blockchain you posted is public so someone else can mine on top of your chain to claim your coin on another consensus layer so some miners may want to keep mining their coins past the requirement that some consensus layers require so they can be assured to claim the coins on new consensus layers.  This would be similar to hard forks in some ways and different in other ways.  It would be the similar as the same people can own the same coins on multiple blockchains, but different in that there is no "fork" persay and you trading coins could show up on both blockchains simultaneously if desired or not (by the consensus layer using replay protection techniques).  But the cool thing is clone coins could be invented that copy your transactions from another consensus layer but the new consensus layer uses a new algorithm.  This would mean if one consensus layer becomes 51% attacked the other ones with different algorithms would be safe.  If one consensus layer get's 51% attacked it is no problem because no coins will be lost (accept on that consensus layer) because everyone's ownership is already backed up by the fact that they have their own coins blockchain that they can use to claim their coins on another consensus layer.  You would finally be truly in control of your own destiny.  It would be much easier in this situation to swap consensus layers than it is to currently shift momentum from a coin to its hard fork.

The consensus layer can be anything, centralized or decentralized.  It can be a program or database or blockchain or anything or combination.  This layer would most likely be a blockchain as well.  The interesting thing here is it doesn't need to offer any rewards, either coins nor fees in order to get miners.  Why?  Simply because people already have an incentive to mine on it.  Why?  Because they own coins and those coins need a good trustworthy consensus layer to trade them.  It is the same incentive people have for creating crypto wallets.  Why do they create free open source crypto wallets?  Because they own crypto.  There will be two types of miners.  Those that want to claim coins from scratch (CC's; Coin Claimers), and those that buy coins and mine on the consensus layer to protect their investment (CM's; Consensus Miners).  CM's will be the type of people who like running Full Node's.  CC's will be the competitive type who like creating something from nothing.  CM's will need to be connected to the internet and run a full node and download the blockchain, and CC's will not need internet and will not need to download the blockchain.

Bitcoin designed mining for 2 reasons; fair distribution, and to prevent fraudulent accounting from being accepted.  We already solved the distribution by the claiming coins method.  Preventing fraudulent accounting by mining is already incentivized by people wanting to protect their investment.  I think we have now obsoleted bitcoin's mining fees and mining coin rewards with regards to the consensus layer.

Therefore many decentralized consensus layers can and will be free in every respect.  But I believe some centralized ones will likely charge coin owners for being able to claim coins on their consensus layer.  So in addition to having 1000+ or whatever blocks on your coin, you may also need to contribute a fee to get your coins listed on their consensus layer.  This would be similar to how exchanges work currently.  It is also possible for these consensus layers to charge a fee for trading coins, but I doubt that will be very widespread especially because people are investing into every coin, and coins are not divisible (think of them like satoshi's) so people probably wouldn't want to give them away as fees for every trade.

In conclusion this system would be more decentralized, resistant to 51% attacks, cloneable, flexible and fluid, fungible, high investment and therefore high price, more collaborative, larger more open and embracing community, secure, no fees, offline minable, and coin claiming doesn't require downloading the blockchain.  The downside would be increased complexity, more flexible (less prone to breaking but also more prone to adaptation/change), and value uncertainty.  You don't really know how much resources people are putting into mining coins because they can hide how much they mine until they make their "claim" public.  Even then they may only reveal part of what they have mined, just revealing enough to claim the coin.  But I feel this is a good thing because this uncertainty as to how much more people invested then they let on would raise coin prices.

No comments:

Post a Comment

Thank you for your feedback! Sharing your experience and thoughts not only helps other customers but also helps me to improve what I do!