Decentralization of digital currency
- Pain Points of Decentralization
- Limitations of Distributed Systems
- Solutions to Pain Points
- Genius PoW
1 Pain points of decentralization
There is no payment intermediary to help complete transaction confirmation and bookkeeping.
It is required to realize peer-to-peer transactions.
Transaction records cannot be tampered with.
The system requires 24-hour continuous operation, and availability does not depend on specific members.
How to upgrade and maintain, and how to ensure compatibility?
2 Limitations of distributed systems
Unsolvable CAP problem
C (onsistency): Consistency! Accounts must be consistent.
A (availability): availability. Available 24 hours.
P(artition tolerance): partition fault tolerance. Some nodes cannot provide various services due to power outages, restarts, inconsistent software versions, etc.
3 Solutions to Pain Points
All participating nodes are billed together.
All transactions are confirmed by ledger records through broadcasting.
Ensuring that transaction records are tampered with through cryptography is extremely costly.
Similar to the p2p model, all nodes are equal, there are no privileged nodes, and each node has all the functions of independent operation.
Through consensus upgrading, the community committee is responsible for technical review and emergency handling.
4 Geniuses of PoW
The technical means commonly used in distributed systems turn synchronization problems into asynchronous problems when the load is extremely large and there is no real-time requirement.
The transaction itself does not have real-time requirements. Think about bank transfers and cash registers in shopping malls, so as long as the delay is within the acceptable range, it is OK.
The cost of falsification is huge, even if forgery can make other nodes' data also need huge cost.
Everyone is equal before the computing power, and no node has privileges unless the computing power is crushed.
The more participants there are, the more stable and reliable the system will be. More participants means greater costs for counterfeiters.