Topic: Design a crypto issuance system that keeps earning easy and cheap (Read 202 times)

This is necessarily how it must be, competition allows the protocol to be kept active but above all avoids double spending and makes Bitcoin a consensus system based on the majority of nodes.  Without a POW system it could not be secure enough, look for example Ethereum which has switched to POS, it risks self-elimination with one's choices.  In fact, they have had to limit the tokens they will release when they can be distributed, there are too many millions to dump.

How do you propose the coin gains value if almost anyone with a PC can participate in mining and earn tokens equally like every single person out there mining the same coin? If there is an equitable share of tokens and anyone can easily mine it, it will be a coin with no value at all. Why would I buy a coin at $1 from you when I can mine it myself with ease? And then who would buy it from me if they can mine it too?

Bitcoins algorithm and tokenomics are made in such a way that makes it valuable. I don't think that Bitcoin would have had any value if Bitcoin had an infinite token supply and everyone could easily mine it which means that almost everyone would have at least some of it or maybe a lot of it. There will be no concept of supply and demand, and that is what drives value.

Are you suggesting a coin that everyone can mine with minimum effort? If so then your coin will lose its value and over time it will become one of the shitt coins that the cryptocurrency market already has.

You have to understand that in the world of economics, overabundance means lack of demand and therefore shitty value. This is why toilet papers were dirt cheap, but when the pandemic struck, and for some fucking reason the Americans hoarded so much of it that stores jacked the prices, resellers sold it for so high the inventor of toilet paper rolls will wet his shorts and shed a tear, and thus the prices soared up high. In that regard, if you want to build a cryptocurrency project that prioritizes mining over the value of your coin, why don't you just build something like DogeCoin lmao, infinite supply, so the coin is worth practically nothing.

in short, you gotta understand that a tradeoff between value and supply must be made if you want to prioritize one over the other. For most, they'd rather put value over supply, but for some deviants out there, supply is king.

Well I suppose it would need some sort of mechanism to limit the supply, it could either be a burn mechanism or perhaps instead of being pseudonymous the system could have some way identify "miners" or whatever you would call them, some sort of digital ID system so it would allow anyone who joins to mint new tokens easily in a reasonable amount but not spam the system.

Anyway its just a thought experiment. I wanted to see if anyone could design such a system that keeps a blockchain secure, focuses on equitable distribution of newly minted coins rather than competition of resources (like how PoW works), but also enforces against "spamming" or "hacking" the system to destroy the equitable distribution, and of course would need some sort of mechanism to keep the supply limited in some way to create a sense of value (though it wouldn't need to be super strong, I mean look at dogecoin its an infinite supply and a useless memecoin but because Musk pumped it two years ago people still think its 'the future' lol).

I was thinking about it because of the idea of needing the fiat onramp into crypto, and if there was a way to onboard people into crypto in order to bypass the need for fiat onramps by design a blockchain that could distribute tokens equitably in the way PoW originally did before competition for PoW made it too hard for the average person to do anymore. There many not be a way to do it, just wondering what people could come up with.

And what will push the price for that particular altcoin you are suggesting? If all start mining to earn some easy profits and there is no value for the altcoin then I think it's unnecessary to do any effort because you won't get anything out of them.There are plenty of them and creators who have tried to influence people have gained some quick profits but not people.

PoW does not prioritize competition but security. The competition for the next block attracts huge computing power to the network which contributes to protecting it against getting hijacked.
Ease of earning means uncapped supply which increases exponentially as the coin becomes more popular. With no way to regulate the introduction of new coins, you get hyper inflation, or a worthless currency.

This is not a practical theory to consider. A system cannot constantly add value without any requirement or input to regulate its supply.
Even though fiat is introduced solely by banks, it is still prone to hyper inflation due to the uncontrolled printing of new notes, imagine if everyone could print it in their homes with relative ease.

- Jay -

Form Op's explanation I think he wants to say there is a need for a system that should be easy for everyone to mine and each small and major client of the system should be rewarded in that system. Op this is the fact high demand rise the cost and currently the same thing is with the Bitcoin system Hash rate increase due to an increase in the hash value which is based on the manners. There is no possible system that can do it practically according to my observation if you dare to create a system then it will directly hit its market value and supply and no one wants to mine some shit worth nothing.

You are possibly influenced by the recent spam mining apps such as Pi and etc etc. I think your idea to distribute power is very good but it's just theoretically similar to the OSI model in networking. Still if somehow we consider such a system is lunched by handling all the impossible outcomes with an idle case then how can you say that there will be no spam if you can mine it with your low-spec device then everyone in greed will go for mining more by adopting spamming ways.

Correct me if I am wrong on it..

What the OP is suggesting is really an altcoin and there are and have been thousands
of them.

There is no value in "easy and cheap" unless you are the creator of an altcoin.

The fact that Bitcoin is difficult to mine adds to its value which in turn makes it expensive
to acquire. Its deflationary nature feeds into the "supply v's demand".

BTC was orginally easy to mine at the beginning because then it had little value and the mining competition was not so much. The algorithm just had to be created in this way in order to give BTC more value and to secure or protect the network, because that is exactly what the miners do when they validate transactions.

If it was so easy for anyone to mine BTC right now, it may be easy for an attacker to hack and control the network or to have 51% of the networks hashrate, because it would be no different from the centralized shitcoins that are very easy to mine and reverse transactions. The difficulty of mining makes the network secure, and that is why the network algorithm adjusts it after 2,016 mined blocks to keep the system secure and moving fine.

Finally, i think mining difficulty is also essential so that the timeframe set for the last block to be mined would be actualized, if it was so easy to mine BTC, probably by now we would have mined the entire 21 million BTC so quickly and it may reduce the value of the coin so drastically.

It would be very easy to design a blockchain system like this, but the problem is how we can keep this ecosystem going. We know that something that can be obtained easily will be worthless, just like the blockchain system that we build, we build a system where everyone can mine coins easily and that's the problem, because that's going to make a lot of coins circulate, and that's will make the value of the coin worthless. And how can we possibly keep the blockchain system we built from collapsing, while the price of our coin alone is worthless?

I think it would also be important to have a system that gradually increases the difficulty of earning new coins as the network grows, to prevent a few people from monopolizing the coin supply. This way, more people can participate and benefit from the network over time.

Easy means no value.

You can mine many shit coins (Proof of Work) very easily but maybe you will not get enough money for power cost if you sell them. It is even not taken maintenance cost, staff salary etc.

Check how shit coins are easy to mine but in return, nearly no profit. See at Revenue / Profit column.

https://whattomine.com/

If you want staking, Staking / Masternode coins are here but likely you won't get profit by investing a node and stake it to get reward.

Bitcoin was easy to earn originally, you just had to have your PC run the mining software.

It is no longer easy because you have to spend thousands of dollars to buy a single ASIC miner to mine Bitcoin. That was the inevitable outcome of the economic competition that PoW creates.



How would you design a blockchain system that would prioritize ease of earning newly minted coins love the long term, rather than prioritizing the economic competition that Bitcoin's PoW does?




So the goal is that even after your theoretical cryptocurrency is very popular some years after it is introduced and lots of people are interested in earning coins through whatever system you set up, you need that system to allow them to do it easily/cheaply. Your average Joe should be able to reasonably participate in earning newly issued coins without large time or capital expenditure, including capital expenditure on investing which makes PoS not satisfy the requirement. Okay, go!