How mining the BTC is different from minting tokens, and what steps will Krakin’t token take in the near future.
A very good article, for anyone who is new to Bitcoin, mining and block rewards is located here:
One of the keywords is the “proof of work”. Ethereum network uses the similar idea, however, we can mint tokens on Ethereum regardless the background mining process.
So, what if we didn’t need any proof to reward the tokens to an account? It would be the null-hypothesis to a proof of work, and therefore, it would make the proof of work pointless (for tokens at least). Nevertheless, it still boils down to just one function, which is, update of the balances mapping (table). This means that the only work that needs to be done is to keep a track of accounts and their assets in order to perform the transactions. Therefore, as already mentioned in one of the earlier writings, Krakin’t token will use the balance update functions in order to mine the tokens. It will be a proof of burn, and the exact mechanism will be disclosed in the future. The mechanism of how the projects will benefit from the proof of burning will be submitted to a patent office, and not disclosed to a public beforehand. This has to be done in order to protect the project from other competitors such as XIO token.
The only problem that remains is regulating the mining rewards. The BTC model is great for a block-chain that does not keep a track of any of the external events, such as current universal timestamp. Nevertheless, the early miners do benefit from the small difficulty and therefore, the BTC model may suffer manipulations by the early miners. Furthermore, since we are not using the proof of work, we must also adjust the BTC model to fit our needs.
We can use some deductive logic to formulate the high-level definition of a difficulty.
d — difficulty
a — amount of rewarded tokens
t — amount of time it takes to reward new tokens to miners
b — amount of tokens that are burned in order to mine tokens
If any of these is decreasing, we can use the ! (not) operator and affirmation for increasing.
Therefore, we have these basic rules:
d => !a, d=>t, d=>b. Since these also apply, !d=>a, !d=>!t, !d=>!b
we can therefore say d=!a, d=t, d=b, that is, (!a=b=t)=d
This is the simplest and the most basic introductory logic. Now, the problem is, how do we formulate this into a mathematical equation to fit the reality ? I have some ideas and possible solutions, but this will be another project to work on after a token release. The full mining algorithm will be disclosed to a public when the right time comes, and when the project is safe and protected.
Therefore, there will be blocks to be mined, the BTC model will be adjusted to fit the proof of burning, while there will be no unfair advantages toward the early miners. Furthermore, I will look into a model where the token can be mined to infinity, provided the proof of burning algorithm.