By Mirko Stanić on The Capital

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Image for post
Image by Russ McElroy from Pixabay

When discussing blockchain technologies, a question that often comes up is one of wastefulness of Proof of Work consensus mechanisms (PoW) and how a newer, often Proof of Stake (PoS) consensus mechanism, is favorable. This line of thinking demonstrates the fundamental misunderstanding of what a blockchain is and also a lack of knowledge about the history which preceded the invention of blockchain.

The blockchain technology and its first successful implementation, Bitcoin, rose up from the work of a group of cryptographers who shared their ideas on the Cypherpunk mailing list started in 1992, by Eric Hughes a mathematician from Berkeley, Tim May, a former Intel employee, and John Gilmore, a computer scientist. The basic ideas of Cypherpunks were described in their manifesto written in 1993. …


Because depending on how we define the term cryptocurrency, they either already exist or they would be to volatile.

Image showing cracked coins with popular crypto symbols.
Image showing cracked coins with popular crypto symbols.
Photo: shutterstock.com

Short answer, there will never be a true crypto-euro or a crypto-dollar because depending on how we define the term cryptocurrency, they either already exist or they would be to volatile.

To clarify a bit, we must first understand what is blockchain and cryptocurrency. Blockchain is a protocol for synchronizing the contents of a database among a group of unknown users. If the users are known it becomes a simple distributed database or a federated system. This is also one of the reasons why there is no such thing as a private or permissioned blockchain but that is another story. As for cryptocurrency there is some misunderstanding as to what it is. …

About

Mirko Stanić

IT systems developer and project manager. Particularly interested in distributed IT systems (DLT, Blockchain).

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