Tau is an answer to some of the more pressing problems in the cryptocurrency industry. Currently, the most used cryptocurrencies suffer from an extreme inequality issue, as the vast majority of coins and tokens are hoarded by the lucky few.
As a pure currency, Tau doesn’t make any promises about being the future of smart-contracts or dApps…. Tau keeps it simple — A true exchange of value offered fairly to all users.
Unlike other cryptocurrencies, Tau does not look to benefit speculative holders. The speculative aspect of crypturrencies is one of, if not the major roadblock to mass adoption.
Many blockchain projects overpromise and under deliver. They claim to be the be all and end all solution to a majority of the worlds problems, but few have lived up to the hype. Tau does none of this, Tau has one goal and one goal only, to act as a truly fair digital currency that actively encourages circulation.
Unlike many other cryptocurrencies which are engaged in a battle of the fees, Tau will remain permanently low in fees due to its innovative harvesting strategy. Rather than using mining for block discovery and coin minting, the entire 10 billion Tau total supply is minted in the genesis block. Tau users are rewarded for improving the velocity of currency (rate of spending) by receiving a fraction of the fees contained within each block of transactions.
Why Tau is Needed in Today’s Market
As many cryptocurrency enthusiasts are aware, cryptocurrency mining is becoming an increasing cause for concern, not just owing to its enormous energy burden, but also due to the lack of equal opportunity in today’s market, where only those with specialist knowledge, surplus capital and access to cheap electricity can thrive.
Tau seeks to completely do away with crypto inequality, linking rewards not to investment, but to the velocity of money (how frequently one transacts with Tau).
One of the major problems with the current market is the HODL mentality. This mentality leads to stockpiling of cryptocurrency, rather than promoting their utility as an exchange of value. In our mind, cryptocurrencies were intended to eventually replace fiat currency as the next generation mode of value exchange, rather than instead replacing gold as a speculative investment option. Both proof-of-work and proof-of-stake based cryptocurrencies promote hoarding, rather than the free circulation of currency.
Besides this, the scalability of first generation cryptocurrencies is intensely debated, with the majority believing that onchain scaling solutions for Bitcoin are simply not feasible. Tau brings a solution that addresses the hard truths, without bias, looking to build a truly useful cryptocurrency by introducing a new automatic-block size concept called auto-scaling.
The energy concerns of proof-of-work based cryptocurrencies has repeatedly come under intense scrutiny. According to the Digiconomist Bitcoin Energy Consumption Index, the Bitcoin mining network consumes around 73.1TWh of electricity per year, which is approximately the same as the yearly energy consumption of Austria! The market needs a cryptocurrency that can meet the demands of its users, without crippling the worlds energy supply.
Approximately 906KWh of electricity are consumed per Bitcoin transaction, that’s approximately $109 per transaction.
Tau Coin Features
Tau brings a complete new consensus mechanism — Proof-Of-Transaction (POT) to the game.
With POT, Tau users are rewarded for participating in transactions, the more transactions, the greater the reward!
Proof-of-transaction uses on-chain, historical accumulated transactions to determine who can propose a new block. Unlike other cryptocurrencies which use mining to generate new blocks, Tau will instead use a process known as harvesting, where all addresses have a chance to generate a new block. The probably of generating a new block is proportional to the number of transactions the address has made within a certain time window.
1) Harvest Club and Club Wiring Transactions
Tau users can form groups known as “harvest clubs” which receive the transaction fees contained within each block. These rewards are transferred to participants of the chosen harvest club through a club wiring transaction, which allocates the fair share of the reward to all the addresses in the club. Within each harvest club, a certain percentage of the block fee reward is retained with the club leader, whilst the rest is distributed to the remaining club members in accordance with their harvest power.
2) Harvesting Power and Signal Transactions
The Tau protocol includes a special kind of transfer known as a signal transaction. Signal transactions are a zero value transaction that is used for delegating harvesting power between users, e.g. When address A sends a signal transaction to address B, address B inherits its harvesting power, this is only reset once address B returns a signal transaction to address A.
3) 1Mb block size (auto-scaling future)
Tau initially launches with a 1Mb block size, with a maximum of 5,760,000 transactions per day at this initial size. In the future an upgrade to automatically adjusted block size dependent on the bandwidth of the network will be considered.
Join our Community!
Tau is an experimental cryptocurrency and is still very much under development. There will be kinks, there will be roadblocks, but we will persevere. We welcome all early-birds, experts and crypto-enthuasiasts to join our community and help build a cryptocurrency not just for the privileged few, but everybody! We welcome contributions from the community!
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Find out more on: https://taucoin.io
