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