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RE: Dan Larimer and Satoshi's 2010 Interaction: Does Steem Solve Bitcoin's Scaling Problems?

in #bitcoin8 years ago

Bitcoin runs Proof of work. You "mine" a block by solving a hash. LOTS of power needed to make the network secure.

Proof of Stake: Every coin has a chance to "mine" the next block. Power needed? Basically the verification of that mining, nothing artificially hard to do. Thats why you can do this verification on low-power computers. Every smartphone can do that.

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one could say that the cost of proof of work adds physical value to the coin, while proof of stake the value is 100% speculative

ah ok, thanks