Blockchain, POW and DPOS

Mick de Graaf

Mick de Graaf

Co-founder CryptoPepes.io and PepChain.io

Announcement!

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Crypto Friday!

19:00 - 23:00

42 Workspace - Rotterdam

Todays Program

Why we need blockchain

Blockchain basics

POW

DPOS

- Mutable

- Prone to censorship

- Not transparant

Centralised Databases are Bad

 

Imagine....

These Three Guys

Living together

Ideal Roommates

Not so Ideal

Chores

Clean bathroom - Vitalik
Clean livingroom - Dan
Clean kitchen - Elon

 

 

Listkeeper: Elon

Chores

Clean bathroom - Vitalik
Clean livingroom - Dan
Clean kitchen - Elon

 

 

Centralised

Elon Cheated!

Chores

Clean bathroom - Vitalik
Clean livingroom - Dan
Clean kitchen - Elon

 

 

Chores

Clean bathroom - Vitalik
Clean livingroom - Dan
Clean kitchen - Elon

 

 

Chores

Clean bathroom - Vitalik
Clean livingroom - Dan
Clean kitchen - Elon

 

 

Solution!

Dan

Vitalik

Elon

x

x

Elon loses reputation

How blockchains work

block 0

Hash: 0x8872

Previous: 0x0000

block 1

Hash: 0x1435

Previous: 0x8872

block 2

Hash: 0x9073

Previous: 0x1435

A chain of blocks!

Hash?

Parts of a blockhash

Blockhash

Previous blockhash

Merkle Root

Nonce

Timestamp

(In bitcoin)

hash0

hash1

tx0

tx1

tx2

tx3

The longest chain is valid

Has to be hard to create blocks

Proof of Work

Difficulty

A blockhash needs to be below a certain point

Parts of a blockhash

Blockhash

Previous blockhash

Merkle Root

Nonce

Timestamp

(In bitcoin)

hash0

hash1

tx0

tx1

tx2

tx3

This we can influence

High Cost of Creating Blocks

Let's try that

- 4 people get a dice

- Everyone rolls the dice once per turn

- First one to get needed number creates a block

- Needed number starts at 1

- Next number is current number + turns it took

- Wraps around at 6

Pros

Proven technology

Anybody can join mining

Secure

Cons

Energy usage

Slow

Hardware investments

Only large networks are secure

DPOS

Invented by Dan Larimer

DPOS CHAINS

LISK, EOS, PEPCHAIN and Others

Like This

Validators Get Elected

$

=

Each validator takes turn

Validator #1

Validator #2

Validator #3

Validators need to wait for their turn

No "Work" needed

Pros

Fast

Great for small networks

Low energy usage

Anyone can vote

Cons

Risk of collusion

Rich get richer

Initial distribution is hard

Thanks!
Any
Questions?

Blockchain and Proof of Work

By Mick de Graaf

Blockchain and Proof of Work

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