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Byzcoin is interesting but like Bitcoin its security model depends on massively decentralized mining.

Mining is a function of turning electricity into coins. Since coin generation rate is fixed through a difficulty adjustment, mining becomes a winner-take-all game where only those miners with the lowest electricity costs can effectively compete. Thus the system collapses quickly into a mining oligarchy.

What does Byzcoin propose to resolve the as-yet unresolved problem of mining centralization, which is fundamental to the success of any of these coins?



Any proof-of-work based system has this problem, especially when the PoW is outsourceable. However, I believe you are missing the point of Byzcoin, which is that if there is a set of decentralised miners we can still get the strongly consistent, final guarantees of Byzantine agreement in a scalable way.

ByzCoin has PoW to be Bitcoin compatible, but it can change to PoS or PoA or even permissioned systems (e.g hyperledger).




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