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After the invention of Bitcoin, people with no understanding started to falsely question the “inefficiency” and “waste of energy” of the proof of work consensus mechanism.
Then, they invented replacement systems such as proof of stake; which uses deposits of money inside the network to produce blocks instead of energy; and proof of authority; which uses the “reputation” of the validators as the only guarantee that they will respect the system’s protocol.
These replacement systems are not blockchains, they are imposters.
What Is a blockchain?
A blockchain is a chain of blocks of data that are sealed and linked by proof of work stamps or hashes. It is the database of the system that is replicated in all nodes of the network for maximum redundancy, thus security.
The blockchain is not the network itself, nor the aggregate of machines and miners of the system. However, many in the industry call these systems “blockchains” for simplicity.
In computer science, a group of data, or selection of records from a set of data, is called a “batch”. When a batch of Ethereum Classic (ETC) transactions, a proof of work blockchain, is grouped and then is sealed with a proof of work stamp or hash, then it is called a “block”. If it is not sealed, then it remains just an unprotected batch of data.
Only proof of work cryptographically sealed batches of data, in a competitive miner environment such as ETC or Bitcoin, are very difficult to tamper with blocks.
Batches of data created with no work by people or entities who made cash deposits in a network, or are just trusted because they have “good reputation”, are not blocks, they are just what they are, unprotected and easy to tamper with batches of data.
Imitating the format of blocks does not make a system a blockchain proper.
Only Proof of Work Chains of Blocks Are Blockchains
The whole point of a true blockchain is to do a lot of work to create the stamps or hashes that seal the blocks.
The stamps are extremely costly to produce, therefore very difficult to violate.
These stamps are the only way to guarantee that all the participating computers in the system will follow exactly the same state of the chain, at the same time, without even consulting with one another or receiving orders from higher authorities who control the system. This is what makes a real blockchain truly decentralized. All alternatives are inexorably centralized just like corporate cloud services.
The term “block” denotes hardness and power; very much like true bricks, blocks of concrete, or stones; similar to how ancient city walls were protective barriers against invaders.
A wall made of cardboard is no protection, is easy to build by imposters, and easy to discard by those who seek truly protective walls made of really hard materials.
A chain of blocks made of very costly proof of work stamps is very easy to identify and select versus a chain made with no work at all. It is like comparing blocks of cardboard versus blocks of gold. All nodes in the system can easily identify the real chain just by assaying the material, they don’t need any more information. This is the true invention of Satoshi Nakamoto.
To say that proof of stake or proof of authority systems (and all the variations in between) are blockchains is like saying that a door is locked, but it doesn’t have a lock. Or, that a letter from a king is “sealed”, but it doesn’t have a wax seal with his imprint. Or that a network is decentralized, but it is really centralized.
It is a lie that many can’t see because they are misguided by those systems’ promoters, who use difficult technical terms, convoluted designs, and long unreadable pseudo-scientific papers to trick the masses to accept their ideas with no questioning for fear of missing out.
ETC’s Proof of Work Consensus Mechanism Is Not “Inefficient” nor “Wastes Energy”
The fallacy that proof of work is inefficient is debunked with two arguments:
1. The high cost of producing the cryptographic stamp is precisely the whole point of the method. Without that work done, then there would be no information available for all participants to discern which is the correct block or chain in the network in a decentralized way.
2. The true inefficiency is NOT proof of work. Proof of work, proof of stake, and proof of authority are equally inefficient in terms of scalability (the ability to process larger amount of transactions per unit of time) because the rule of full replication of the data is what obligates the protocol design to create smaller blocks or batches of data that fit less transactions per block or batch. And, to create the block or batches of data in intervals not shorter than twelve seconds. Proof of this is that when Ethereum moved from proof of work to proof of stake in September 15 2022 it did not increase scalability at all! It is today the same unscalable system with the same high fees as before! It was never proof of work the source of “inefficiency”.
The fallacy that proof of work wastes energy is debunked by four arguments:
1. Proof of work enables consensus between all computers in a global permissionless peer-to-peer network with the highest security guaranty known to man.
2. Provides a focal point for entry, exit, and reentry of any participant in world in their complete isolation without any certification, license, special interest dispensation, or authority approval.
3. Protects all the history of transactions of the ledger by forming a practically inviolable chain of stamps that, collectively, are extremely costly to recreate and would take a very long time to do.
4. Creates hard money because the cost of creating blocks is equal to the cost of creating the cryptocurrency, just like gold in the physical world.
All these benefits combined have unprecedented value for human action across the world, which is hardly a waste. And, only networks that use the consensus mechanism that provides such benefits are blockchains.
Code Is Law
