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submitted by /u/Iguana_The_Wise [link] [comments] |
Monday, 9 May 2022
Some fresh thoughts on proof of stake for Bitcoin
This post was censored at r/Bitcoin. I have heard r/btc is open to free speech/ideas. So please hear me out if you have 10 minutes to waste.
I'm pretty near a Bitcoin maxi. About 88% of my crypto is in Bitcoin atm, 11% in a high cap alt I believe in long term (not ETH), and 1% in a low cap alt (lottery ticket/hobby). The alts are both proof of stake (POS), and I have those coins staked on their native onchain platforms for residual income. I own the private keys, and trust only the smart contracts, no person or country/province can KYC my ass and seize my coins. OTOH, my Bitcoin (vast majority of my crypto) sits in cold storage earning nothing because there is no decentralized staking option. Yes I could lend the Bitcoin via Celsius or crypto.com or Nexo etc. which I see many here are doing. However, that is antithetical to the main idea of Bitcoin (unseizable, uncensorable, unprintable). You know those guys are running fractional reserves, and it takes just one bad bear market for a Ponzi to implode. Ask Bernie Madoff investors in 2008, or QuadrigaCX in 2018, or Bitconnect, etc. I will not risk my precious Bitcoin in the hands of some reckless CEO lending it on to day traders and hoping withdrawals don't exceed deposits, while paying themselves and investors unsustainable paper returns. Play stupid games long enough and it becomes statistically more certain you will win stupid prizes.
What is the solution then to allow me to stake 88% of my crypto holdings (Bitcoin) for residual income while owning my private keys? Seems to me that POS is worth considering. For those about to say I am no Bitcoin maxi to even consider this, are you a Bitcoin maxi to lend your Bitcoin out to some Ponzi or CEX for a paper receipt? At least POS lets you own your private keys. Remember this line from Bitcoin rap battle in 2018: “You don’t need to trust the people you just need to trust the code.” Change can happen, and it is not always bad. Segwit was an improvement in block structure made in response to high fees / low throughput. It was great for Bitcoin. Today, plenty of Bitcoin "hodlers" are not actually hodling shit other than a Celsius network login/password. Not only does this risk their own Bitcoin, but it contributes to the devaluation of Bitcoin by helping create paper Bitcoin. POS can help solve both because your coins are locked in open source smart contracts, not in the SQL database of some CEX that might point to no real coins (ask QuadrigaCX bagholders), or be seized because KYC/AML or you might be a Russian (even if you live in Canada and do not support their war) or someone else the USA decides they dislike next week.
Can POS be done with a fixed supply? YES. Both my alts are fixed-supply coins (unlike ETH). You stake for fees + remaining block rewards, same as Bitcoin miners get right now. I would NEVER advocate changing the 21m supply cap and nor would that be necessary, it is a red herring to suggest otherwise.
Caveats? Sure. This is a huge programming task with the associated risks of bugs/exploits during the transition. Maybe even long term POS has some weakness that POW does not. Centralization might be one, though over time this would likely be less of an issue especially as people take their coins off exchanges to stake them onchain, and wider adoption continues.
Anyway, maybe a BIPxxx one day will be put forth. I’m an analyst and a coder of many years in myriad languages, but not a Bitcoin coder, so it would probably not be me, but just throwing this out there. I’m pretty sure it’s been discussed and shot down many times, but I haven’t seen any discussion of it lately other than how pissed people got when a speaker at the recent Bitcoin conference mentioned the idea. But with all the recent Bitcoin “hodlers” here casually mentioning giving up their private keys for a little side income from Celsius or crypto.com, I thought this might be worth a fresh look.
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source https://www.reddit.com/r/btc/comments/ul8mj6/some_fresh_thoughts_on_proof_of_stake_for_bitcoin/
PSA: Anyone With a Computer & Internet Connection Can Run a Bitcoin Node FOR FREE. Just Download and Run the Free Software. You don't need to buy these raspberry pi's that are not primarily Bitcoin Nodes. Those Pricey Pi's Are Lightning Nodes AND Bitcoin nodes. There is a Big difference! Run A Node!
A Bitcoin Node is not a Lighting Node:
A Bitcoin Node Needs Only 5GB of Disk Space & a Internet Connection To Function.
But A Lightning Node Needs 1TB of disk space & Uses a Bitcoin Node To Function. These are often the raspberry pi's you see for sale or in pictures sometimes. You do NOT need these to run a Bitcoin node, or a Full Bitcoin node.
Both of these have different functions and purposes that you can read more about using google.
More on the difference between a lightning node and Bitcoin node here:
https://bitcoin.stackexchange.com/questions/78733/full-node-vs-lightning-node
A few sources for downloading the Bitcoin core reference implementation for free:
https://bitcoin.org/en/bitcoin-core/
You can also run luke-jr's Bitcoin Node Software to accomplish the same thing, He maintains this version of Bitcoin node software mostly on his own, while an army of developers maintain the versions above:
Both of these versions are free, and open source (meaning anyone can use them, modify them, or audit and view the course code: https://github.com/bitcoin).
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Sunday, 8 May 2022
Ledgers require time, and time requires heat
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It is no accident that the 2nd law of thermodynamics is the only equation of fundamental physics that knows any difference between past and future. Because of this, I am convinced that proof-of-work is the only way to introduce time into the timeless digital realm. Everything else relies on external factors and is bound to collapse once these external factors provide false inputs. It goes even deeper than that: The problem of synchronizing clocks is ultimately an insoluble one. Bitcoin offers a practical solution to this impossible problem. You can not solve this problem without introducing a new arrow of time, a distinction between past and future. The link between time and heat is fundamental: without heat, a distinction between past and future is impossible. Without a distinction between past and future, a ledger - something that keeps track of things - is impossible. Once you understand the profundity of the problem, the beauty of Bitcoin's probabilistic solution becomes obvious. Synchronization via a difficulty-adjusted proof-of-work is the innovation. All Credit Should Go To : https://twitter.com/dergigi [link] [comments] |
"Do you all think this is why custodial LN is so commonly used?"
"Am I just the unluckiest bastard out there when it comes to LN or are there other people running into issues like this constantly and just not talking about it due to self-censorship?"
"I've even gone the simplest non-custodial route (Muun) and still have issues regularly."
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source https://www.reddit.com/r/btc/comments/ukl0lq/do_you_all_think_this_is_why_custodial_ln_is_so/
"BCH has been integrated for over a year and the community hasn’t taken advantage. BCH may not survive on THORChain with growing competition among coins. It’s also the only DEX to support native BCH right now."
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