Number42? The Answer to Life, the Universe and Everything
Other crypto currencies like Bitcoin is all using proof of work. With Proof of Work, the probability of mining a block depends on the work done by the miner (e.g. CPU/GPU cycles spent checking hashes). With Proof of Stake, the resource that’s compared is the amount of Number42 a miner holds – someone holding 1% of the Number42 can mine 1% of the “Proof of Stake blocks”.
What is proof of stake “POS” ?
Proof of stake basically means you need to own and hold some of the stake to be able to mine Number42.
What is the motivation for proof of stake “POS” ?
A proof-of-stake system might provide increased protection from a malicious attack on the network. Additional protection comes from two sources:
1) Executing an attack would be much more expensive.
2) Reduced incentives for attack. The attacker would need to own a near majority of all Number42. Therefore, the attacker suffers severely from his own attack.
When block rewards are produced through txn fees, a proof of stake system would result in lower equilibrium txn fees. Lower long-run fees would increase the competitiveness of Number42 relative to alternative payments systems. Intuitively reduced fees are due to vast reductions in the scale of wastage of resources.
Why proof of stake “POS” would likely decrease long-run txn fees considerably ?
In a competitive market equilibrium, the total volume of txn fees must be equal to opportunity cost of all resources used to verify txns. Under proof-of-work mining, opportunity cost can be calculated as the total sum spent on mining electricity, mining equipment depreciation, mining labor, and a market rate of return on mining capital.
Electricity costs, returns on mining equipment, and equipment depreciation costs are likely to dominate here. If these costs are not substantial, then it will be exceptionally easy to monopolise the mining network. The fees necessary to prevent monopolisation will be onerous, possibly in excess of the 3% fee currently charged for credit card purchases. Under pure proof-of-stake, opportunity cost can be calculated as the total sum spent on mining labor and the market interest rate for risk-free Number42 lending (hardware-related costs will be negligible).
Since Number42’s are designed to appreciate over time due to hard-coded supply limitations, interest rates on risk-free Number42-denominated loans are likely to be negligible. Therefore, the total volume of txn fees under pure proof-of-stake will just need to be just sufficient to compensate labor involved in maintaining bandwidth and storage space. The associated txn fees will be exceptionally low. Despite these exceptionally low fees, a proof-of-stake network will be many times more costly to exploit than the proof-of-work network. Approximately, a proof-of-work network can be exploited using expenditure equal to about one years worth of currency generation and txn fees. By contrast, exploitation of a proof-of-stake network requires purchase of a majority or near majority of all extant coins.
How do I mine Number42 ?
To be able to mine Number42 you will firstly need to download a wallet from the Sagteware.NET website. Once you installed the software, you’ll receive your own unique Number42 address starting with an N.
When you have a stake of Number42 your wallet will automatically start mining under the mining tab within the program.