Secret algorithm: Revelation of Bitcoin alternative
For many years, discussions have been held whether Bitcoin, Satoshi Nakamoto and developers have a secret Ethereum algorithm, which gives them the opportunity to generate new bitcoins at unprecedented speeds despite current mining difficulties. The truth is more complicated than the eye.
Bitcoin algorithm: Historical perspective
When 2009 Bitcoin was first launched, and its main technology was based on the POW consensus mechanism (proof (POW). This meant that the mining had to solve complex mathematical puzzles to confirm operations and create new coin blocks. The reward for the decision of these puzzles was newly formed Bitcoins.
Ethereum -algorithm: Another story
On the other hand, Ethereum is based on the programmable blockchain, with which developers can create the user’s intellectual contracts and decentralized programs (Dapps). Over time, Ethereum technology was not as complicated as Bitcoin’s work algorithm. The Ethereum network uses a unique consensus mechanism called Stake (POS) or proof of capacity (POC), and has some charming features.
Potential alternative algorithm
2017 The Ethereum Development team published an article showing his vision of new blockchain architecture, which may keep up with the Bitcoin POW algorithm. The idea was to create a decentralized network with a more efficient and safer agreement of consensus. Although this proposal is still in the initial stage, it has caused intense interest of developers and researchers.
The theory of Alternative Algorithm
Some experts believe that the Ethereum team can create an alternative algorithm that enables faster and more efficient energy -saving mining. According to the reports, the proposed new algorithm would be used by a combination of stock and historical evidence (PoH) to create a changeable and secure mechanism of consensus.
Why the Bitcoins algorithm still dominates
However, there are several reasons why Bitcoins Pow -Algorithm remains:
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- Centralization : Decentralized nature of the POC or POC consensus mechanism, it becomes more sensitive to centralization.
Diploma
Although there are reasonable arguments on both sides, the truth is that we can never know if Bitcoin developers have an alternative algorithm. However, due to recent changes and experts’ opinions, Ethereum is more likely to work on a new mechanism of consensus that could compete or even exceed the Bitcoin POW algorithm.
Although the cryptocurrency landscape develops, one thing is real: the search for decentralization and scaling is only urgent. Will we show alternative algorithm from the shadows of the Bitcoin community? Only time will show it.
Sources:
- Ethereum Development Team publishes the vision of new Blockchain architecture (2017)
- Ethereum Blog – Proof/Proof of Capacity Review
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