Posts by derek@videos.lukesmith.xyz
 (DIR) Post #9zFZmZPna9hSureB5E by derek@videos.lukesmith.xyz
       2020-09-17T12:51:48.746Z
       
       0 likes, 0 repeats
       
       Replication is sufficient to solve the double spending problem ie “asking everyone in the world“, which is not difficult on the internet. The benefit of proof of work is a signal of fitness that resolves ALL selection issues-- ie both hard and soft forks. This costly signal of fitness is an independent metric from trading price, but which corelates with trading price(willingness to spend electricity). Ultimately, this makes it a robust store of value, the most important long term function for an asset.  POW is like a peacock's feathers: functionally superfluous, but still useful. POW leads to 2 independent investment signals: the hardware arms race and electricity usage. Hardware(the max mining rate of the network), shows cumulative long term investment. Electricity usage signals people's instantaneous pricing mindset. Then trading price signals institutional and broader public interest. These three signals make for a very robust social contract of value storage, even without anything substantive being produced.