Single Utility Protocol on TAU Coin

TAU Coin as a newly developed concept offered by TAU team to the community has a protocol that could be considered as one of TAU advantage. Protocol architect tends to put multiple benefits into one chain such as peer-to-peer payment, coin-base reward, ERC20 contract or privacy algorithm, and the list can go long and fancy. Each one of these functions is good and essential in many applications.

However, putting them all together in single protocol is not only crowded but also dangerous. Let’s analyse the situation that two utilities coexist on one chain, such as BTC. Miners could make both transaction fee and coin-base mining reward. Each function, mining or funds-wiring has its own supply and demand ecosystem. For example, in order to receive coin-base block reward, you need to compete by paying for physical resources; on the other side, in order to support peer to peer payment and receive transaction fee from users, you need to generate the block as well. However, two system valuation is different enough to cause discrimination. Connecting them together was thought as a smart design for one stone getting two birds, but now coin-base reward is significantly more weighted than transaction fee. This makes the cost of transaction too high to maintain. Some miners does not care whether there are transactions in the block at all.

This kind of single protocol could be viewed as other advantage of TAU coin offered by TAU team to the community for better crypto users ecosystem.