The next generation of cryptocurrency*
Bitcoin is changing the world. But it is not without flaws. Work is ongoing to improve on Satoshi's original design. Come learn about some cryptocurrency ideas that you may not have heard about.
Bitcoin introduced a groundbreaking idea that, for the first time, solves the double-spending problem in a distributed protocol. But Bitcoin is just the first iteration on this idea – and it has some unsolved problems. The mining network consumes a tremendous amount of energy; fixed supply implies deflation, which leads to some undesirable economic properties; the trading value is highly volatile.
The promise of Bitcoin has ignited the imaginations of many researchers and enthusiasts, who are now building the next generation of cryptocurrency. This presentation will introduce some of the ideas that these people have developed or are developing, including:
- Peercoin, which implements a hybrid proof-of-stake, proof-of-work mechanism to limit energy consumption of the verification network.
- Freicoin, which incorporates demurrage – a third alternative to deflation and inflation. In theory demurrage keeps currency value stable and has other positive effects.
- Litecoin, which introduced scrypt as the work function in proof-of-work mining, making mining accessible without investments in costly hardware. (Scrypt has been adopted by other cryptocurrencies, such as Dogecoin.)
Some other ideas that we may get into include:
- Merged mining, which incentivizes miners to contribute to emerging cryptocurrencies.
- Inflation, which is being experimented with to a limited extent in various cryptocurrencies.
Depending on attendee interest we may begin with a very brief Bitcoin primer. But to get the most out of this session some background on Bitcoin is recommended.
cryptocurrency, bitcoin, peercoin, freicoin, litecoin, proof-of-work, proof-of-stake, demurrage