⛏️Proof-of-Work
The proof-of-work (PoW) mechanism is a cornerstone of the original Bitcoin protocol, ensuring network security and consensus without a central authority.
Last updated
The proof-of-work (PoW) mechanism is a cornerstone of the original Bitcoin protocol, ensuring network security and consensus without a central authority.
Last updated
In our revised system, this mechanism is innovatively intertwined with Solana NFTs, introducing a novel approach to mining and network difficulty.
Hash Power Contribution: Each Solana NFT contributes apecific amount of hash power, quantified as 10 Solhash per hour. This integration of NFTs into the mining process is a key innovation, democratizing participation and adding a layer of digital asset value to the mining process.
Mining Participation: The ability to mine in the network is tied to the possession of these NFTs. As there are only 10,000 such NFTs, the number of potential miners is capped, preserving network decentralization.
Dynamic Network Difficulty: The network difficulty adjusts based on the number of NFTs actively mining. A greater number of mining NFTs results in higher network difficulty, which, while reducing individual rewards, contributes to a stronger and more secure network.
Faster Blocks: The block time in our system is reduced to 5 minutes, compared to the original 10 minutes in Bitcoin. This adjustment aims to increase the speed of transaction processing and network responsiveness, making the system more practical for everyday transactions.
Impact on Network Dynamics: The faster block time necessitates more frequent adjustments in network difficulty, ensuring that the rate of block creation remains consistent despite fluctuations in the number of active miners.
Halving Mechanism:
Halving Every 42,000 Blocks: In the original Bitcoin protocol, the block reward halves every 210,000 blocks. We have modified this to occur every 42,000 blocks, considerably accelerating the rate of halving.
Increased Scarcity: This accelerated halving schedule increases the scarcity of new coins at a faster rate than the original Bitcoin. The reduced block reward over time creates a deflationary pressure, potentially increasing the value of the currency as the supply of new coins decreases more rapidly.
Economic Implications: The faster halving schedule, combined with the novel mining mechanism and reduced block time, creates a unique economic model. It balances the need for incentivizing miners in the short term while enhancing the long-term scarcity and perceived value of the currency.
Rewards
The pool that solves the block first gets the reward. Pools with higher hashpower have higher chance to solve a block.
The integration of Solana NFTs into the proof-of-work mechanism, along with adjustments to the block time and halving schedule, represents a significant evolution of the original Bitcoin protocol. This approach not only maintains the core principles of decentralization and security but also adapts the network to the modern digital economy, offering a more accessible and efficient mining process while enhancing the scarcity and potential value of the currency.
