Also if someone could tell me the 'why' of mining in SC 2.0 - if protection has already been achieved with the 'trusted nodes', why have 'the public' waste all that electricity mining? Why is distribution still through mining?
That decision is up to the public, if they would rather buy the coins instead of mine them, then they are free to do so.
I'm asking the rational of the protocol. Why mining as a means of distribution?
Because it controls inflation/deflation of the currency. The more people that sign on to the network, the less the currency inflates. This form a hypothetical 'economic equilibrium" that humanity has never seen before. If 1000 people sign off, the hyper fast algo follows thus allowing the currency to inflate, and make it psychologically attractive again to "mine". This whole idea that "Deflation is GOOD, or INFLATION is BAD, or vice-versa are just 2 parts to the greater truth. The fact is you need
both to run a successful economy, and what could be the best regulator to that test than difficulty itself?
So SC detects the number of users (1000 people sign off), and not just the hash?
If it goes by 'users' (and thats who has to use money - people), then why is it distributed to who has the biggest rig?
Edit: I mean, if 50% of the SC user base leaves, but one guy puts up a rig that equals those peoples lost hashrate, how is hashrate an indicator of economic deflation/inflation?
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