Why is R3, Blyth Masters, PoS of the Etherium and “bankers” going along the wrong path, and the idea of ”blockade without Bitcoin” is wrong.
Bitcoin is an information network, backed up by energy divided by time. Bitcoin reliably protects information by converting energy into safety.
Information is valuable only if it is true.
Bitcoin miners spend energy, every 10 minutes making a safety mark, protecting the block from changes and distortions. They use the search algorithm for this, as an insurance against any kind of hacking, including quantum. The results of the work done prove not only that some time has passed, but also that the information with time stamps in the detachment is correct. The more energy is involved in the mining process, the more data is protected.
Information is more valuable if it is truthful, not false. Consequently, the more energy is spent on mining, the more you can trust information in the blockroom. Bitcoin draws power into truth (security). Without security (truth) there would be nothing.
The results of the algorithm for selecting a solution (proof of work) are important here, because there are only two types of security methods in the world: those based on strength and maintaining secrecy. Secrecy has a weak side. Disclosure of the cover of secrecy is only a matter of time. Physics defines power as the speed of work. Work can also be defined as strength. Historically, it was power that wrote history. These are just laws of nature. They make Bitcoin work.
And that is why the altkoks offering alternative methods of securing information from forgery (such as proof of possession) are not so significant. Even the very definition of possession of something, involves the demonstration of the asset. In this case, you need to ensure its safety (for example, using a password). If you try to develop a scheme in which having 100 “judges” who accidentally decide what is true (which is how part of the Altokemon works, for example, Ripple), then you will somehow have to ensure the safety of this circle of judges. Ultimately, the compromise of a narrow circle of such “judges” is only a matter of time.
In the case of Bitcoin, time is playing on our side. To measure energy, you need time. In our universe, these concepts are closely related to each other. Ultimately, the Bitcoin network provides a new way of proving the expiration of not only time, but also what is true (or at least what we people value as the truth when paying time stamps in a detachment). There are other information networks based on the blockboys, acting on the same principles as Bitcoin (for example, Lightkoyn). But they are not worth as much hashing power, and therefore they are not so secure. Simply put, the level of confidence in them is much lower. Why then use a network with less reliability, when you can protect your information with a more reliable alternative in the form of Bitcoin?
Confirmation of events in the Bitcoin network is in 24/7 mode, block by block. This is due to the fact that the network uses energy to ensure the security of truth instead of a mechanism to “maintain secrecy”, making the network transparent to everyone and everyone.
So, the power is equal to the energy divided by time. Power is the frequency with which work is performed. Bitcoin network is based on a cryptographic algorithm, the result of which is a time-sensitive cryptographic proof.
Reliable information is extremely valuable in our society. Time stamps also allow us to trust machines when they tell us about the events that occurred (by measuring the time of their actions with the blockbuster).
But remember that “absolute truth” does not exist. Everything depends on the subjective point of view (this is the first lesson of journalism, as well as a well-known fact from quantum physics). Something can be true more or less. Everything in the world is relative. You could everywhere in this text replace the word “truth” with “reliability.” If you have a clear understanding of the Bitcoin network and its protocol, you will find that the network provides a sort of absolute truth that never existed before (at least on this planet). This opens the door to the markets of predictions and oracles.
So, why is all this so important? But because a more reliable currency is more valuable than less reliable. Since you can also put a timestamp (or ‘block label’) on information (by computing the cryptographic hash of a real document) by placing it in Bitcoin’s blockbuster, the Bitcoin formula also offers the world a new way of confirming what is true (or at least more true than in another, less powerful system).
With regard to information, and the used form of randomness (or even more likely, unpredictability) built into the mining process, the competition between the miners creates just such a level of security or truth of the information contained in the detachment.
Supporting the work of the system, the miners are motivated by the reward for the block to use the maximum possible capacities for finding it. The protocol is self-regulating: on average, every ten minutes there is a check on the number of involved power capacities. Without this time interval, for us people, this system would be meaningless (because people base their perception on the flow of time), just as we are not able to measure energy without a time constant.
It does not matter what duration this time interval is (12 seconds or 10 minutes), while the formula says that the energy / time = true. It matters only that everything is built according to the protocol with which everyone agrees (to participate, you need to accept the rules of the game).
Thanks to this formula, anyone using Bitcoin network can send money (information) and receive money from other network members without even knowing their names. Mutual trust is built into the system itself.
So, if you need to “know the truth”, then you should use Bitcoin, since there is no better method of proving that a certain block of information is true.
Anyone can connect and add their information by supporting the work of the network by commission. Thus, any participant in the network can be absolutely sure of the truthfulness of each block of information in the detachment, that every bitokoyn and every satosh is real.
Altchane are less safe, even being tied to Bitcoin
I’m not against the development and deployment of third-party blockboys in general. I’m only against the point of view that the Altcheans are capable of surpassing the value of the Bitcoin network and its currency component, simply by offering users the same mechanism of “reserve currency” and “digital gold.” Altchane, are intended to solve highly specialized tasks (especially those that are tied to Bitcoin blockade), but they are more expensive to protect against hacker attacks (because their security is ensured by the mechanism of secrecy) and they are not able to bypass Bitcoin, whose main block is blockbuster. In the Altchane, the decision to spend money on security is taken by coin holders.
In any system, such as Ripple, the Etherium or any Altchane banking project, the “truth level” will be lower than in the Bitcoin network, and therefore the latter is more valuable. You should at least ‘attach’ your altchane to the main blockade (Bitcoin’s blockade) to get at least some chance to survive under the onslaught of competing Altscheyns (and their currencies), and also to supplement this consolidation with other security methods. The bankers will not be much better than centralized databases. Securing security by maintaining secrecy is a deliberately wrong path.