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Imagine both systems, proof of work and proof of stake, as democratic elections.

This is a highly simplified ELI5 attempt to explain the difference between the two best-known mechanisms for consensus finding in distributed systems.

Imagine both systems, proof of work and proof of stake, as democratic elections. But instead of using your ID card (proof of citizenship) to cast your vote, you use something else.

In the case of proof of work, you need to do some work. For example (and in most cases with crypto) you invest computing power. The more you invest, the stronger your voting rights in the system. …

Bitcoin in 50 years

I went to the future for a few months and I can tell you what I saw.

Fifty years from now, Bitcoin is a highly stable and reliable backbone for most digital financial services. Most transactions no longer take place directly on the first layer. Many second and third-layer solutions are now mass-adopted applications, and many of the biggest new tech businesses achieved their standing in this market. …

AI can help make business and money-making decisions

For those of you who don’t know, GPT-3 by OpenAI is a language model. It’s a conversational AI with a focus on human-like language, able to generate coherent and diverse paragraphs.

I’ve been dreaming of integrating its awesome content generation skills into for many months now, and I was finally lucky enough to receive access to the GPT-3 BETA program last week.

I’ve spent most of the weekend exploring this incredibly creative entity, as well as giving and receiving advice from it/him/her. Here is one of the conversations I’ve had with GPT-3. …

This article is an excerpt from my book, A brief introduction to Bitcoin.

Bitcoin’s proof-of-work scheme prevents double-spending for slow payments where the payee waits for the transaction to be acknowledged in at least one block. Each new transaction goes through two stages of verification, once after creation and once after it has been included in a block, as described earlier. As a result, a double-spending of the same Bitcoins would require a very high computing effort for the generation of fake blocks. This type of double spending is discussed in the next chapter, as part of the larger issue…

Listed below are selected key events that played a role in Bitcoin’s initial evolution and performance. Due to the great number of important occurrences, the list is incomplete and doesn’t cover all relevant or influencing events. Please understand it as my personal view on what happened in the world of Bitcoin up to the date my book A brief introduction to Bitcoin was published. For the sake of clarity, the chronological development is divided into a few subsections.


· Satoshi Nakamoto publishes the Bitcoin white paper on 31 October 2008.

· On January 03, 2009, the genesis block is created.

This article is an excerpt from my book, A brief introduction to Bitcoin.

“It is not sufficient that everyone knows X. We also need everyone to know that everyone knows X, and that everyone knows that everyone knows that everyone knows X — which, as in the Byzantine Generals’ problem, is the classic hard problem of distributed data processing.”

- James A. Donald

A fundamental problem in distributed networks is finding consensus in the presence of faulty or defective processes. A dependable system must manage the failure of one or more of its components when it either permanently crashes, repeatedly…


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