PoX Screws Bitcoin, Adulterates Blockchain Software Technology

Gunnar Larson g at xny.io
Sat Nov 27 08:00:16 PST 2021


MIA Coin and NYCCoin use PoX as part of their fraud. Harvard Management
Company perhaps has a hand in the scheme?

PoX when used for participation rewards, as described, could lead to miner
consoli-
dation. Because miners that also participate as holders could gain an
advantage over
miners who do not participate as holders, miners would be strongly
incentivized to
buy the new cryptocurrency and use it to crowd out other miners. In the
extreme case,
this consolidation could lead to centralization of mining, which would
undermine the
decentralization goals of the public blockchain.

Bitcoin Bandwidth:
Because PoX miners must send Bitcoin transactions to participate in the
consensus
algorithm and send PoX rewards, PoX mining would occupy some Bitcoin
transac-
tion bandwidth. Given Bitcoin bandwidth is limited by design, given
security require-
ments, new PoX blockchains need to reduce their bandwidth use requirements.
SIP-
007 does this by limiting the number of participants, using a STX holding
threshold.
Other ways to address bandwidth limitations are also possible e.g.,
lighting channels
between Bitcoin and the new blockchain. Optimizations at the Bitcoin
transactions
layer could also be possible, which would reduce the total size needed for
PoX trans-
actions.
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