From f3dd46bd76da4b0f833c0f41e4ae4a008c2f92c1 Mon Sep 17 00:00:00 2001 From: "myarbrough@oreilly.com" Date: Tue, 18 Nov 2014 12:26:31 -0800 Subject: [PATCH] Made changes to ch09.asciidoc --- ch09.asciidoc | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/ch09.asciidoc b/ch09.asciidoc index 382b6e26..83462f4e 100644 --- a/ch09.asciidoc +++ b/ch09.asciidoc @@ -146,7 +146,7 @@ In this chapter, we will concentrate primarily on the technical characteristics ==== Consensus Innovation: Peercoin, Myriad, Blackcoin, Vericoin, NXT -((("alt coins","consensus innovation")))((("consensus","innovation")))Bitcoin's consensus mechanism is based on proof of work using the SHA256 algorithm. The first alt coins introduced scrypt as an alternative proof-of-work algorithm, as a way to make mining more CPU-friendly and less susceptible to centralization with ASICs. Since then, innovation in the consensus mechanism has continued at a frenetic pace. Several alt coins adopted a variety of algorithms such as scrypt,((("Blake algorithm")))((("Groestl algorithm")))((("scrypt-N algorithm")))((("SHA3 algorithm")))((("Skein algorithm")))((("X11 algorithm"))) scrypt-N, Skein, Groestl, SHA3, X11, Blake, and others. Some alt coins combined multiple algorithms for proof of work. In 2013 we saw the invention of an alternative to Proof-Of-Work, called _Proof-Of-Stake_, which forms the basis of many modern alt-coins. +((("alt coins","consensus innovation")))((("consensus","innovation")))Bitcoin's consensus mechanism is based on proof of work using the SHA256 algorithm. The first alt coins introduced scrypt as an alternative proof-of-work algorithm, as a way to make mining more CPU-friendly and less susceptible to centralization with ASICs. Since then, innovation in the consensus mechanism has continued at a frenetic pace. Several alt coins adopted a variety of algorithms such as scrypt,((("Blake algorithm")))((("Groestl algorithm")))((("scrypt-N algorithm")))((("SHA3 algorithm")))((("Skein algorithm")))((("X11 algorithm"))) scrypt-N, Skein, Groestl, SHA3, X11, Blake, and others. Some alt coins combined multiple algorithms for proof of work. In 2013, we saw the invention of an alternative to proof of work, called _proof of stake_, which forms the basis of many modern alt-coins. Proof-Of-Stake is a system by which existing owners of a currency can "stake" currency as interest-bearing collateral. Somewhat like a Certificate of Deposit (CD), participants can reserve a portion of their currency holdings, while earning an investment return in the form of new currency (issued as interest payments) and transaction fees.