Just How Important Is It For Stakeholders To Have The Ability To 'Elect' Witnesses or Network Participants? Let's Take A Look At Bitcoin's Development Issues. by cryptofreedom

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· @cryptofreedom ·
$9.12
Just How Important Is It For Stakeholders To Have The Ability To 'Elect' Witnesses or Network Participants? Let's Take A Look At Bitcoin's Development Issues.
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<h3>Enabling stakeholders to have direct influence over the election of network participants is the best way to offer incentive to all participants to act honorably.&nbsp;</h3>
<p>Instead of all producers having the same ability to produce blocks based upon their computational power, stakeholders having the ability to select which producers they agree with and trust makes the job of network participation much more competitive. Not only do network participants need to have sufficient computational power to handle the network activity, but they must also show that they are good actors who have the best interests of the platform in mind. A witnesses income and job relies solely upon having adequate stakeholder support, so they are highly motivated to provide reliable, efficient, and trustworthy hardware and services. While Steemit currently has 20 witnesses, the number can be increased if the stakeholders decide to, which gives the ability for stakeholders to have control over the number of active witnesses as well.&nbsp;</p>
<p>http://coinalert.eu/minthumb/bitcoinist_net_blog-dpos2.jpg</p>
<p>This gives virtually all of the power to the large stakeholders, whose interests are aligned with enabling the platform to have the best chance at achieving long term success. Utilizing a Delegated Proof Of Stake voting method is likely the most successful method for aligning the interests of network producers with the long term success of the platform. Instead of just requiring participants to invest in powerful hardware, DPOS systems enable a higher level of competition among producers compared to any other system. Competition always offers additional incentive to network participants to do the very best job they can, because the stakeholders can vote them out in an instant.&nbsp;</p>
<h3>Now lets take a look at Bitcoin's proof of work method..</h3>
<p>The original idea for Bitcoin's determination of participants was great for the time, but it seems like it has created many of the issues that the Bitcoin network has faced. The mining of Bitcoin is controlled by a handful of very large operations and mining pools, who have shown that they have their best short term interests in mind rather than the long term interests of Bitcoin. These mining pools and large operations really have no motivation to change what they are doing, because they are still able to make profit in the short term. In order for any changes or improvements to be made to the Bitcoin protocol, the changes must be enacted by an overwhelming majority of network producers. No changes or modifications can be made without the support of the major operations, which has shown time and time again to be an incredibly difficult task. As you can see, there are many mining pools with sufficient power to halt any potential changes...&nbsp;</p>
<p>https://www.bitcoinmining.com/images/bitcoin-mining-pool-hash-rate-distribution.png</p>
<p>Regardless of how important these changes are or how many users or developers support them, if the major operations don't get on board the changes cannot happen. This has shown to significantly slow bitcoin's progress and development through the years, and will likely continue to be an issue. The large mining operations really have very little incentive to act in the best interest of Bitcoin as a whole, and often choose to behave in the manner that allows them to receive the largest benefit in the short term. Even if you're the largest holder of Bitcoin out there, you have no direct say in which producers contribute or whether any changes get enacted, and that could prove to be very dangerous.&nbsp;</p>
<p>Instead of creating a system that assumes producers will act honestly and in the best interests of the platform, a system where producers are at risk of losing their jobs and positions if they present themselves as bad actors is vital to keeping the interests of the platform and its producers aligned. If a change or fork is desired by the community and stakeholders, they can put pressure on witnesses to support these changes in order to continue to receive their support. A witness must also maintain better communication with the community compared to the Bitcoin network, because they are motivated to be the very best witnesses they can be in order to continue to gain support. The sheer power that the ability for stakeholders to replace a witnesses instantly is very important, because it means that witnesses must treat their responsibilities very seriously.&nbsp;</p>
<p>If a Bitcoin miner's hardware goes down for a few hours they may have lost some potential revenue, but they are able to continue just like they were before once they get their hardware back online. If a Steemit witness' hardware goes down for a few hours, they will likely loose some of their support and may even fall from their position. This means that not only do witnesses have the incentive of not missing out on potential revenue, they also must consider the consequences of loosing their witness standing. DPOS systems allow for incredibly competitive witness election, which will likely turn out to be one of the best methods of increasing a platform's chance of long term success and adoption.&nbsp;</p>
<p><em><strong>I really hope that you enjoyed this post, and as always I urge you to leave any comments, input, questions, ect. below! Thanks for reading!</strong></em></p>
<p>image sources:<a href="http://coinalert.eu/minthumb/bitcoinist_net_blog-dpos2.jpg">1</a>-<a href="https://www.bitcoinmining.com/images/bitcoin-mining-pool-hash-rate-distribution.png">2</a></p>
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@alienposts ·
$1.76
DPOS is an awesome strategy, I hope steemit succeeds, big websites and social networks can learn from steemit even if it's not popular now, everything can change in a short time and an underestimated social network can be leading the social media bandwagon in the near futur.
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