I just had an idea I want to throw here, and you'll do whatever you want with it:
It would be great you could run a similar pool for Litecoin! It's one of the few trustable altcoin, and it's pretty much the last place we can spend CPU and GPU hashing power and not spend more in electricity.
Eloipool and wizstats are really well done software, and you guys seem really honest and devoted to your pool, so I believe it would be as awesome with Litecoin.
It's
because we're honest that we won't get involved with scams like Litecoin.
Essentially it comes down to there being a void of any reason people would adopt Litecoin as a currency.
Bitcoin by nature can only provide the same value put into it, so in this "raw" state it functions as nothing more than a pump-and-dump scam as it simply redistributes money from the buyers to the sellers.
The reason Bitcoin
itself escapes this category is that it is a major technological innovation, bringing something new (trustless currency) that has value to the world.
By being adopted as a currency, Bitcoin can benefit even those who buy into it last.
Litecoin and other scamcoins like it, on the other hand, do
not bring anything new to the table.
They are just mere clones that retain the pump-and-dump nature of Bitcoin, but without the innovation that makes Bitcoin viable as a currency.
Litecoin specifically made three
irrelevant changes:
- Change of mining proof-of-work from SHA256d to scrypt. This was done as an attempt to make GPU mining impractical. Not only is that a bad idea (CPU-only mining would put cryptocurrency in the hands of illegal botnets), it also failed. Present-day scammers will try to claim scrypt is ASIC-proof or ASIC-resistant; this is also false and impossible in theory. If anything, scrypt is more vulnerable to ASIC mining since it performs poorly on consumer hardware. Finally, some people try to pass scrypt off as a memory-hard proof-of-work; while it is true that the scrypt algorithm itself is a memory-hard key-strengthening algorithm, it is not a memory-hard proof-of-work algorithm since it requires just as much memory to verify as it does to find (the key property of proof-of-work algorithms is that the work requires more of than the verification); Litecoin's scrypt parameters also use so little memory, that it can be performed without memory at all.
- Faster target block time. This is often passed off as "faster confirmation", but in reality it isn't at all. To get the same security as 6 bitcoin blocks confirming a transaction, you need around 24 litecoin blocks (there are a lot of factors involved that weigh into this). In the end, the faster blocks just bloat the blockchain more - and not just the entirety of the blockchain, but the headers-only minimal blockchain that would be used by light clients.
- Larger currency supply. But we all know 1 BTC is divisible to 8 decimal places. There are more mBTC than LTC, so no "silver to gold" is needed in an alternate blockchain.