The Daily Decrypt is a daily weekday video broadcast covering a wide variety of cryptocurrency and blockchain technology topics and news stories. At CORE Media we’ve found the broadcast to be an invaluable and entertaining resource in cryptocurrency news and provide a weekly summary of The Daily Decrypt episodes. Welcome to the Weekly Decrypt!
With governance being such a hot issue amongst cryptocurrency aficionados lately, due mostly to Bitcoin Core’s inability to address Bitcoin’s scalability, it can be helpful to take a step back and look at the different types of governance at play in the cryptocurrency world at this time.
Bitcoin and most altcoins have always operated through a ‘hashocracy’ – a system of governance in which the majority of mining power dictates the direction in which the currency will go. This model is appealing due to its simplicity, but as has been demonstrated by Bitcoin, mining power can become quite concentrated in the hands of a few over time which can lead to an inability to make timely decisions that suit the whole network.
DASH has implemented a second tier to its architecture that allows it to operate as a Proof-of-Work (POW) hashocracy on one level and as more of a sort of democracy through its second tier masternode layer. Participation in this layer requires an initial investment of 1000 DASH which then allows masternode owners to perform services like instant transactions and coin mixing for the POW layer in exchange for 45% of the block reward and the right to cast cryptographically verifiable votes that decide the direction in which the currency will go. Amanda refers to this model as a ‘hashocracy-meritocracy’.
BitShares has overhauled its governance structure entirely through the implementation of what it calls ‘Delegated Proof-of-Stake’. In this system, 1 BitShare is equal to 1 cryptographically verifiable vote on the direction in which the currency should go. Votes are also cast specifically to decide upon the number of miners, or ‘witnesses’ as BitShares calls them, should exist in order to sustain an adequate level of decentralization. Amanda refers to this overhauled model as a ‘meritocracy’.
Governance in cryptocurrency serves the purpose of keeping the most participants the most pleased most of the time. A clear development direction for any decentralized system can only be attained if its governance model is sound and successful at serving its purpose.
It’s certainly an interesting time to be a fan of cryptocurrency competition! May the best governance model prevail!
A mishap at The Daily Decrypt’s studio rendered what was planned to be today’s episode useless, which caused Amanda and Pete such sadness that instead they compiled the one video that could brighten any cryptocurrency fan’s day. They made a DOGE meme montage using material found on the DOGECOIN subreddit! Enjoy.
HYPER is a Proof-of-Stake cryptocurrency that can be obtained by completing ‘kills’ in the MMO games being hosted on the private servers listed on HYPER’s homepage and www.cashncarry.info. HYPER also has a TipBot available that can be invited into Twitch streams and allow for viewers watching a stream to tip the streamer with HYPER as well as to place bets regarding the stream with other viewers.
HYPER, which will soon celebrate its second birthday, plans to expand its offerings throughout the year to integration with a wider variety of both mobile and web games.
MMA and UFC fighter Jon Fitch has recently agreed to sponsorship by HYPER. This sponsorship was advertised as a bounty for 50,000 HYPER which was funded through a series of donations from the community and accepted recently by Fitch. Fitch had previously accepted a sponsorship from NautilusCoin so he is obviously interested in cryptocurrency. Fitch will wear the HYPER logo and website on his shorts during a televised fight in Las Vegas on April 2, 2016. The logo may also make it onto t-shirts and a banner to be used at the event.
As Bitcoin continues to face challenges regarding its governance structure, many have begun to look at some of the top altcoins as examples of what effective governance of decentralized systems might look like. One such altcoin is DASH, which at least one user has claimed to be “The one true Bitcoin as Satoshi envisioned it“.
DASH has implemented a number of features, collectively dubbed DASH Evolution, into its second tier that allow for the execution of its governance model. Amanda kindly deploys her angelic voice in this episode and reads aloud for us the DASH Evolution whitepaper which outlines its unique and, thus far, quite effective governance model.
The coins sitting in any cryptocurrency address are spendable by whomever has the private key for that address. The private key is a long string of alphanumeric characters that most wallets keep hidden from the user, encrypted with a password but on an internet-enabled device. And we all know that any internet-enabled device can be hacked and a hacked device can have its private keys decrypted and stolen.
Especially for those unfamiliar with proper security measures and other methods of cold storage (offline private key generation), the hardware wallets available on today’s market are an easy and user-friendly solution to cryptocurrency security.
The devices sold by Prague company Trezor are not internet-enabled, generate their private keys offline and can interact with a MyTrezor web wallet, MultiBit and Electrum. Through an Electrum wallet, the Trezor device can hold and spend from both Bitcoin and DASH private keys.
The devices are used by connecting them to an internet-enabled device via USB. Both a PIN and a password are required in order to use the device. In order to circumvent any keylogging malware that may be on the internet-enabled device, the order in which the numbers appear on the PIN entry pad is always scrambled and different. The PIN is entered first and then the password.
Once logged in successfully, initiating a transaction is much like doing so from any other wallet or interface. You enter the recipient’s address, the amount, select your fee level, and click send. A confirmation prompt will appear on the Trezor device both for the transaction details and the fee amount prior to submitting the transaction to the blockchain.
By minimizing the attack vectors available to any would-be thief of your private keys, hardware wallets like the Trezor are quite effective at maximizing cryptocurrency security and providing users with the opportunity to feel more comfortable operating as their own bank.
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