Related video: What is QTUM? Programmer explains.
Tuesday, Two January
What is NEO – Could it be the ONE.
A New-comers guide to NEO/GAS Crypto Currencies.
It doesn’t sound that ingewikkeld, but when you consider many of the knots making up the network would fairly gladfully behave ter any that would most benefit themselves (i.e. lie, hack, steal, omkoopbaar) te order to build up an advantage (i.e. free money).
Related video: 1BTC: Binance issues, eying NEO EOS POWR QSP QTUM
Without going into to much detail the system relies on the knots running the network to solve a tricky problem (referred to spil Proof of Work). When they find a solution, they get to add transactions to the block chain, and spil a prize they get some free bitcoins, thesis are the bitcoin miners, they make the bitcoin network possible, they are also the reason it will eventually fail (IMHO, but more on that straks).
At very first Bitcoin operated amazingly well, but spil it got thicker, it began to kasstuk scalability issues. The number of transactions that can be processed vanaf block created a bottle neck and spil a result it can take a very long time to process a transaction. You can pay more to have your transaction shoved up the queue, but it now cost around $30 just to make your bitcoin transaction toebijten. So spil a day to day currency its pretty much futile. Some of thesis issues have bot worked around, but switches are difficult to make ter a peer to peer network.
The one thing Ethereum did wrong wasgoed keep the Proof of Work specimen for maintaining the block chain.
Related video: Litecoin Is Falling? Will We Recover (Qtum Analysis)
So whats wrong with the Proof of Work prototype
One other interesting point will occur when the cost of mining a bitcoin is higher that the prize for mining it, with the price of bitcoin spil it is this is difficult to see that happening, but if mining rises at the rates predicted to or bitcoin crashes, wij could get there quicker than you think.
NEO does not use proof of work, it uses Proof of Stake, and by that I mean instead requiring 51% of the processing power to arch the network to your evil will, you require 51% ownership of the network, and if you possessed 51% of it, hurting the networks reputation te anyway would be tegenstoot productive (prices would crash and your 51% would be worthless).