Topic: Do Consensus Algo impact on price of bitcoin and others? (Read 320 times)
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I am on the research for the next project. Many of you are experts in different sections. I wonder, if it really matter for what kind of consensus algo proof is used for any project. It is just a security that matters or. if there is any other side in the story. when I checked the minning players. I found large number of miners are involved in SHA Algo then others. Are they affecting the overall community? or this all really don't matter. only the project is what matters?
If you are go into this topic then the answers wouldn't be technical but rather political. Technically, the involved algorithm should make no difference to the price. In reality, A PoW miner has much more skin in the game than a PoS miner. Whether a PoW miner uses SHA-256 or a Scrypt algorithm is the same thing. The difference lies in it being PoW, PoS or some other variant of PoS being touted in the name of more decentralization. A PoW coin requires investment from the miners themselves which means they are a very important stakeholder in the price of the currency. Unlike PoS or its variants, you do not "own" the coin but you earn them against your investment.Another important thing is that how does availability of ASICs or concentration of ASICs for a certain algo will impact the price. I think the case of Sia can be a good study on how ASICs and the involved politics can bring a project to a standstill. Apart from this, you may take a look at this discussion and subsequent comments by @philipma1957. There are some important points in there which can tell you more about the importance of Algorithm or the possibility to have them changed as required.
you mean the mining algorithm? then not exactly. the algorithm has to be a good one without any flaws in it so that it doesn't make the result worthless. other than that there are lots of factors that affect the price of bitcoin or any other project. such as its decentralization, or when it comes to altcoins whether they have any kind of innovation that could make them better than the existing working solution. in fact this last one is the reason why you see a large number of altcoins using SHA256 mining algorithm, because they have no innovation, they just copy bitcoin and basically change its name only!
I am on the research for the next project. Many of you are experts in different sections. I wonder, if it really matter for what kind of consensus algo proof is used for any project. It is just a security that matters or. if there is any other side in the story. when I checked the minning players. I found large number of miners are involved in SHA Algo then others. Are they affecting the overall community? or this all really don't matter. only the project is what matters?
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