Sunday, April 9, 2023

Cardano Daily Discussion - April 10, 2023

Hello everyone,

Welcome to the Cardano Daily Discussion!

The standard sub rules apply here (see sidebar), with the exception that price discussion is allowed in this thread, though we encourage you to try not to make this the focus and talk about the project itself. Please ask questions, help others and be civil - be sure to get involved in Project Catalyst too!

If you're new, please make sure you're read through the newbies guide and share it with others (use the ?newbies comment command to reference it).

⚠️ Scam Warning ⚠️

Please read the Cybersecurity guidelines for Cardano Users.

There are ongoing giveaway scams on youtube and many scammers lurking in Cardano's social channels impersonating ambassadors/moderators/official staff contacting users via direct messages.

For example, searching 'cardano' on youtube and sorting by most recent upload date shows several giveaway scams running (all videos in screenshot are scams):

Ongoing 'giveaway' scams on Youtube

The youtube scams are automated; use stolen footage usually of Charles Hoskinson and are restreamed so to appear to be 'live'; appear to have many watchers (which are bots); use bought hacked channels and are edited to appear like official channels.

See this post for more examples of what they look like

Do not be fooled!

To be clear:

⚠️ There is no such thing as a Cardano giveaway
⚠️ Never share your seed phrase with ANYONE
⚠️ Never send ADA to someone promising to send you more ADA back
⚠️ You will never be contacted by ambassadors/moderators/staff

Please report scams on the Cardano Fraud Detection Bureau.

⚠️ Scam Warning ⚠️

https://preview.redd.it/60ofludzpq8a1.png?width=284&format=png&auto=webp&v=enabled&s=7d58fc8aaa2eb5f125624608b97bdd7b943a1111

Midnight Subreddit

In anticipation of Input Output's new data protection blockchain 'Midnight', I've managed to acquire r/Midnight through some negotiation and repurpose it for the Cardano Community (the sub was created for a card game back in 2011 but was mostly unused).

I decided to do this as I thought the project will eventually need a home on reddit and best to setup now before any scammers do. Obviously there's not much to post about on there right now as it's early days as the project is yet to be released, but if you'd like to be kept up to date on the project please feel free to join the new subreddit if the project interests you and I'll be sure to post updates as and when they become available.

Right now the sub is mostly a carbon copy of r/cardano, I've copied most of the automod and rules over, so certain aspects may seem a little incongruent atm, but I'll tailor and tweak the sub as we go. Feel free to send me or post any input if you want stuff to change.

Cheers all

Dogecoin is the answer: Encourage your friends and local businesses to use and accept it now... Dogetatoe knows the way...

https://i.redd.it/qlhcb1fsjysa1.jpg

Why Bitcoin Loves Proof-Of-Stake and How PoS Benefits BTC

^{Originally Published:} ^{https://medium.com/coinmonks/bitcoin-loves-proof-of-stake-f1e775904c6c}

\Disclaimer**
No Bitcoin will not be transitioning to POS.

https://preview.redd.it/su94y1w2mwsa1.jpg?width=639&format=pjpg&auto=webp&v=enabled&s=7cd65de612c59757af55aa38e38a79eb05164406

Everybody already gets it, Bitcoin is & will forever be the OG.
The god & grandfather of all cryptocurrency to come.

This then begs the question;

“If Bitcoin really is the superior system, how-or-why would anyone allow for Proof-Of-Stake to take over?”

First and foremost, Bitcoin is a decentralized monetary network built upon a consensus mechanism called Proof-Of-Work. POW is a (sybil) fault-tolerant mechanism that leverages electrical energy for the securitization of network activity. Once viewed as a marvel of society, PoW has been receiving tremendous backlash from nations & individuals worldwide for its “unjust” energy consumption.

This is a topic outside the scope of this article, however, this author is of the opinion that people who blindly ingest information that is distributed by mainstream media are just plain sheep. I’m not saying that Bitcoins is green, I am saying that it is worth looking deeper at factors like where the energy for it is sourced from and a cost analysis on how much value is provided in return for the energy. DYOR.

This backlash has become a prime opportunity for an alternative consensus mechanism to establish its prominence; hello Proof of Stake. PoS, in simplest terms, is a mechanism that substitutes energy consumption with monetary value; instead of dedicating machines for security, people must dedicate their money. This displacement of the tool with which a network is secured, has understandably, put POS in a controversial position in the eyes of many decentralization maximalists & cypherpunks.

While I personally am of the opinion that the future will be composed of multiple different blockchains, consensus mechanisms & crypto architectures; I stand that PoW will remain the purest form of security for money as a whole. I do not have any immediate problems with PoS, after all, as you are about to find out, it benefits Bitcoin!

Proof Of Stake definitely has many elements to its design that deserve merit, such as superior transaction finality and throughput. At the same time, it does so at the cost of lesser decentralization and lower fault tolerance than POW.

But before we get too caught up in a technical “whose better” jibber jabber, let’s remember that this is not a discussion about consensus mechanisms or decentralization. This is a discussion about power.

No matter what might happen in the event that all alternative cryptocurrency transfers away from POW, there are three things that can be guaranteed:
1) Electrical energy will not cease to exist.
2) Nor will Electrical energy cease to be consumed.
3) It will merely find a new application.

This leads to the subject of this article;

How TF does Bitcoin benefit from POS?

At any given time, there is a finite amount of energy available for a given purpose. In the event that there are no other networks competing with BTC for energy from the electrical grid; that would in turn mean that BTC becomes the single, WHOLE consumer of electricity for the crypto industry & in fact BECOMES, the electric grid. (obviously even in POS there is a microbial level of energy consumption required to run the hardware that is connected to a network, but it is insignificant in comparison to BTC mining.) Let’s not split hairs trying to compare a lightbulb to a gigafactory.

Moreover, by removing competition for electrical energy, the prophecy of Bitcoin only strengthens. People tend to think that competition is a good thing because it signals market demand. That is not untrue, however, Peter Thiel has been able to sum up the delicate nuances of competition through an elegant quote: “All failed companies are the same: they failed to escape competition.” With no competition, Bitcoin is able to play its own game.

Additionally, this power restructuring frees up the creative space for people to manufacture more advanced mining machinery. Rather than having to create a multitude of different sub-optimal equipment for different systems, more laser focused efforts can be put to solving a single problem. Yes, this may cause higher centralization as the evolution of mining has proven; ASIC machinery might be out of reach for regular everyday people. However, when the stakes are this high, there is something magical in being able to trust open market forces of competition between corporates & governments, which brings unbounded levels of security.

They say that time is the ultimate test.

Well I believe that as time goes on, more people will be able to see the true tradeoffs in POS systems and appreciate the pure power of POW. Which in turn will bring all the more attention to Bitcoin & drive the prices to unforeseen levels.

Time will tell.
But until then, stack those sats! (NFA)

Thank you for reading

May you Live Long and Prosper 🥂

^{Originally Published:} ^{https://medium.com/coinmonks/bitcoin-loves-proof-of-stake-f1e775904c6c}

[Sun, Apr 09 2023] TL;DR — Crypto news you missed in the last 24 hours on Reddit

r/Bitcoin

Relai_Alex

Survey: 84% of Americans don’t believe that Bitcoin investments are a threat to the environment