On Monday 11th of December, Wolfie from Kaspa and Amaury from Ecash joined CoinEx team, Johnny, and Klaus from the research team, to discuss "The Evolving PoW Dynamics".
Diving right in here, the three experts kick off the thought-provoking discussion by examining the role Proof-of-Work plays in today's evolving crypto landscape and how innovations are shaping the future.
Highlights of the Session:
- CoinEx's 6th-anniversary celebration and community-oriented activities.
- Wolfie emphasized Kaspa's organic growth and its innovative protocol for parallel block processing, enhancing scalability without security compromises.
- Klaus tackled Satoshi Nakamoto's consensus limits, advocating for a balance between fast block times and decentralization.
- Discussions on maintaining decentralization in PoW to ensure network security and integrity.
Special Focus on eCash:
- Introduction of an ASIC device supporting network decentralization, accessible to students and hobbyist miners.
- A marketing approach centered around organic growth and technological advancements.
- Overcoming challenges: Addressing a major glitch post-main network launch and a 51% attack, with a strong emphasis on security and reliability.
- Commitment to ethical practices in crypto, distancing from unfair token distributions and dubious activities.
The AMA was a deep dive into the challenges and innovations in PoW, highlighting the ongoing efforts of Kaspa and eCash to address scalability and decentralization. CoinEx expressed gratitude for the engaging session and looks forward to more community interactions in future events and campaigns.
Q&A - eCash
1. In light of the diverse blockchain mechanisms present in the industry, what strategies could Proof of Work (PoW) projects implement to effectively highlight their distinct advantages compared to other blockchain technologies?
There are 3 category of consensus algorithms. Paxos style consensus does not allow permissionless networks. Nakamoto style works with PoW. All The attempts to do PoS with Nakamoto style consensus are busted in some way, or degenerate to PoW due to stake grinding. And Avalanche, which works nicely with PoS, but does not have liveness properties, as in, someone connecting to the network after the fact cannot verify the accuracy of the decision made in its absence. So we still need Nakamoto consensus and therefore PoW even today.
2. With the upcoming Bitcoin halving event, how might it influence the market's attention towards PoW projects?
3. With the evolution of blockchain technology, does decentralization remain a cornerstone value for PoW?
The decentralization and the capability to verify ex post facto.
4. Given the scalability challenges faced by public blockchains, what innovative approaches are PoW projects considering to enhance performance scalability?
PoW or PoS don't impact scalability in a significant way. We have technologies to scale Bitcoin, and this is what we are doing with eCash. The validity of these technical solutions has been validated by the project hamilton (the US's CDBC project) which chose a similar technical solution for scalability. UTXO style chains such as Bitcoin can be scaled with minor changes. EVM style chains such as Ethereum are technically much harder to scale. However, the Bitcoin community is very resistant to change, for better or worse, so, even though technically possible, it is unlikely we'll see scaling on Bitcoin any time soon, hence projects like eCash.
5. Considering regulatory climates, can PoW projects navigate compliance challenges and avoid being classified as securities?
It seems to be that way. Nevertheless, most of us are not American, and we should really think long and hard about how much of our life we want to be dictated by a government that's not ours anyway.
We focus on what matters to us and our freedom going forward, and have a community that is dedicated to these values. Decentralization, fast transaction times, scalability. As cash disappears, these values will be more and more important for anyone who cares about their freedom.
6. What initiatives are PoW projects taking to spark interest among users in small-cap mining coins and to cultivate vibrant communities?
We focus on what matters to us and our freedom going forward and have a community that is dedicated to these values. Decentralization, fast transaction times, scalability. As cash disappears, these values will be more and more important for anyone who cares about their freedom.
Q&A - Kaspa
1) With more projects shifting to POS, how should PoW projects highlight their advantages?
They actually are not shifting to POS, that was like 2 years ago - now everyone is shifting BACK to POW :) The advantages are no attention from the SEC and the chance for a miner community to spring up almost instantaneously, among others.
2) When Bitcoin halves again next year, will it attract more market attention to PoW projects? I can't see why not, if not directly, the associated supply shock and overall market increase certainly should be based on past performance in the last 3 halvings.
3) Is the decentralization feature still PoW's core value?
It's certainly on the top 5 list, but academics such as KAS Founder Yonatan would point out more subtle strengths such as higher resistance to attackers etc.
4) Scalability has always been a problem for public chains. How does the PoW project innovate in terms of performance scalability?
PoW blockchains really DON'T innovate, Kaspa does however with our breakthrough BlockDAG protocol called GhostDAG - the ability to include orphans and process simultaneous parallel blocks in consensus.
5) Are PoW projects free of compliance pressure and will they not be recognized as securities by regulatory agencies?
Solely based on PoW, I would say no - also needs to be corporation-free and no ICO / premine etc. from what I have seen.
6) How to attract more users to pay attention to POW small-cap mining coins, and what are your attempts to build an active community?"
As the #2 revenue miner coins in the world - right below Bitcoin - We are beyond this. Kaspa has "made it '' so to speak, we don't have to attract miners anymore. But new PoW coins announced on Bitcointalk and other social media platforms, the word spreads fast. ESPECIALLY once they track on whattomine.com