In our previous analysis we proposed the production cost correlation to token evaluation.

**Why does a token need to exist?**

To incentivize a provider to provide a service. In the case of Proof of Work, the service is mining (providing hashing power to secure the network). The provider takes an expense x and is paid for with value x + y, with y representing market value markup.

So we have proposed that in a;

- Proof of Work system, production cost is equal to, total energy cost for total hashing power / total tokens generated.
- Proof of Stake system, production cost is equal to, total hosting costs / total tokens generated. …

We have previously discussed the equilibrium value of a token and its impact in a decentralized ecosystem. We settled on Pm < t < Cm, where Pm is the (P)roviders (m)inimum cost and Cm is the (C)onsumers (m)aximum expenditure.

The objective, solve for t within the proposed architecture. We have noticed a current design trend where token price does not take system equilibrium into consideration. We explain this statement shortly.

**Solve for Pm**

We start with an investigation on current Proof of Work based systems.

We define the following metrics

- Hashing Power (H/s)
- Power Consumption (W)
- Cost per KWh in…

Objective: Comparison of Consensus protocols

Disclaimer: This is meant to be a comparative benchmark of similar implementations, this is not a comment on specific implementations of consensus algorithms.

Constraints;

- No adversarial targets
- Perfect network
- Transaction backlog near empty
- No transaction validation

Parameters;

- Throughput
- Time To Finality (TTF)
- Data size
- Network awareness

Generalized setup;

- 100 active balance accounts

`generateAccounts(total) {`

accounts = []

for (i = 0; i < total; i++) {

privateKey = crypto.randomBytes(32) …