Cardano [ADA] researcher on defeating the limitations of PoW system

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Cardano [ADA] researcher on defeating the limitations of PoW system

Wed Jul 25, 2018 2:44 pm

Last week, Cardano held a meetup in Rotterdam, Netherlands at Blocklab. Blocklab is a blockchain company that helps develop use-cases of the blockchain technology by working with the alliances of experts in the industry. Here, Bernardo David of IOHK spoke about Ouroboros and the ways in which Cardano distinguishes itself from Bitcoin.

Bernardo David is a researcher at IOHK and teaches at the Tokyo Institute of Technology in Japan. He centered his Rotterdam talk around outlining the Proof-of-Work [PoW] system, its drawbacks and the necessary steps to defeat them. The following are the ideas that the researcher put forth.

In a system backed by PoW protocol, the block producers and the investors of the cryptocurrency are not necessarily the same people. Hence, miners control the whole system at odds with those who have only invested.

Miners are the people who profit by verifying and producing new blocks. Therefore, mining in a lot of cases has become a passage to centralize the system and destroy the blockchain. They can do this by making policy changes, creating or allowing the creation of hard forks and suchlike.

David also talked about ‘diminishing rewards’ for Bitcoin mining. He explained that the rewards keep diminishing by half every 210,000 blocks. This also lowers the incentive for miners to produce blocks and makes it a subject of worry for the system as it relies on these miners to run. ... ow-system/

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