TAUcoin: Proof-of-Transaction

McDappas
McDappas
Aug 6, 2018 · 6 min read

Why Tau?

TAU creates a fair participation economy, where all users are involved in securing the network with their transaction history. With the innovation of Proof-Of-Transaction, users are incentivized to make more transactions and increase circulation by receiving the block reward. There is no advantage to having accumulated wealth and everyone shares in the growth of the TAU economy

What is Proof-Of-Transaction

TAU uses a brand new algorithm called Proof-of-Transaction (PoT) which in many ways is the opposite of PoS. Instead of encouraging a small number of participants to build up a large balance of tokens, PoT will reward large numbers of participants for small transactions made with their funds in the normal course of using the blockchain.

Harvest clubs are formed by a club leader (A0,B0) and numerous club members

The Power of the Harvesting Club

PoT also introduces the concept of Harvest Clubs which is a way for groups to work together to gain block rewards. The TAU blockchain allows each wallet to delegate its total number of transactions to any another wallet increasing that wallet’s Harvest Power. In a Harvest Club, several member wallets will delegate their transaction numbers to a single leader, giving that wallet a greatly increased chance of rewards. When that leader wallet is successful in harvesting, the reward is then distributed to the member wallets.

Secure, Fair, and better for the environment

  1. Secure — PoT also has the potential to overcome some of the security vulnerabilities of other consensus methods. A majority, or 51% attack, is made far more difficult by the one year window. This means in order to execute this sort of attack one wallet or Harvest Club would have to have more transactions than all the other wallets combined for an entire year. At first it might seem like this could to be achieved by creating a lot of meaningless transactions, but the amount of fees it would cost to do so would render the entire process unprofitable. This is an area of ongoing focus and it is the team’s goal to eliminate meaningless transactions completely with its “TAU defender” upgrade in the roadmap.
  2. Fair — PoT makes the TAU blockchain affordable to use and interact with. In PoW and PoS, mining participation is reserved for people with more money to invest in hardware, electricity, or a giant stack of coins in the form of a masternode. PoT has eliminated this barrier to entry by allowing anyone to be a Harvest Club leader, empowering community builders with the means to monetize their network size.
  3. Environmentally Friendly — PoS has made a big argument against PoW with the being environmentally friendlier. As of writing, the Bitcoin network spends more electricity per day than the country of Denmark. This number will only increase with adoption, and this is all to power a network with very few transactions on-chain. The cost of security in PoW is so high that we can’t ignore its contribution to the greenhouse effect. PoS has shown us that there is a viable way to pursue security without consuming electricity, and PoT takes it one step further by making everyone responsible for its impact.

A better user and vendor experience

At the end of the day, the winner amongst all of the crypto currency coins will be the one that provides the best User Experience in payments, while being ultra-secure behind the scenes. Wallets will be the first area of interaction with users, and there is a race to see which UX/UI will end up being the superior choice. That being said, it will be the fee side of the experience that will go through the most scrutiny, as we see transaction counts going up and competition for block space reaching its peak.

How can you join TAU

Want to learn more? The TAU whitepaper gets into a more technical discussion of how consensus is achieved, how randomness is determined, the special transaction process in reward sharing called “Club Wiring”, and a new concept at scaling called “Automatic Block Size”.

TAU Foundation

The Active Unit

McDappas

Written by

McDappas

Dean Pappas | AltcoinAgnostic: a Bitcoin Maximalist that thinks there might be more | Host of “CryptoGrownUps” on YouTube | Editor @ TalkBitcoinTalk |

TAU Foundation

The Active Unit

McDappas

Written by

McDappas

Dean Pappas | AltcoinAgnostic: a Bitcoin Maximalist that thinks there might be more | Host of “CryptoGrownUps” on YouTube | Editor @ TalkBitcoinTalk |

TAU Foundation

The Active Unit

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