RE: Koinos Consensus Algo: Proof-of-Burn
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This is a great article and for you to take time out to seek the truth, you earned my respect. Because you quoted my video and I may have not explained things very well, I want to just touch on some more topics that might help you iterate the understanding better.
KOIN is actually destroyed when you burn it. For example, if KOIN were an NFT and had a serial number, once it is burned, that serial number would never come back again. To further this point, any token can utilize the burn entry point on the PoB contract to destroy their token. And any contract could utilize that proof to trigger another action.
I will cover the whole timestamp and hashing thing in my next article. This is a bit of a technical topic, but I'll do a better job at explaining it in depth.
Solo mining and pooled mining will effectively produce the same results minus whatever cost that the pool operator wants to charge. The real intent though is to showcase that anyone can effectively mine in the way that suits them the best. If you want to support decentralization, run solo. If you dont, but still want to secure the network with tokens, then join a pool. The choice is yours.
It does not help to separate your KOIN into multiple nodes to pump out more hashes. Mathematically if you split your VHP in half (into two nodes) than each node would half its statistical ability to produce a block, negating the effects of multiple nodes. Again, I'll cover this in my next article.
Regarding going from VHP back to KOIN in a year, it is confusing and many people misunderstand this. The reason why is because as your VHP dwindles, so does the probability to produce a block. If you do not perform reburns, than it takes more and more time to "burn the VHP and mint new KOIN" (which i often use the term "convert back to KOIN" and its technically not correct for someone who understands blockchain as well as yourself). If you graphed this, you would produce most of your blocks when you had more VHP and produce less blocks when you have less VHP.
Thanks for the clarification.
np. i made a few edits to the above.
I was very impressed by the video it has pretty good production value for a network that just launched a couple months ago.
Outside of what is in my video. I want to point out a few more pieces of information.
If an exchange converts KOIN to VHP, similar to how HIVE can be powered up, the exchange would need to run a node in order to cast votes. It is possible that exchanges will run their own mining node and offer mining services to their users. This would mean that exchange would burn KOIN at the request of their users and use that VHP to do things such as vote in governance. The exchange may employ a time lock, preventing users from withdrawing their VHP from the exchange. Remember that without VHP, the node cannot cast a vote, and on top of that, only the blocks that the exchange produce would have their vote. To combat this, users should use decentralized burn pools such as burnkoin.com (which i am cofounder of) or fogata.io (which another HIVE developer has created). This is a better model and we're constantly striving to make things better.
This is going to be my favorite topic. you are 100% right that if you lose your key, you lose your account. Because Koinos drops the concept of EOAs, every wallet can natively support smart contracts, which means that we can provide tools such as account recovery through smart contracts rather than creating them at the system level like HIVE does. This simple feature (allowing all wallets to support smart contracts) is the basis for Koinos Account Protocol, or KAP (see more at https://kap.domains). I am a co-founder of KAP as well and we took into consideration, the benefits of HIVE's account system when designing it.