Blockchain Pioneer Lisk on the philosophy of decentralisation
Remember the joke about the two men in the woods who meet a bear – one says to the other, “I don’t have to outrun the bear; I just have to outrun you.” #Decentralisation is a relative term. We must also remember this is early days: the dial-up stage of the internet. #Blockchain systems are arguably kosher as long as they can guarantee better decentralisation than traditional options, without burning as much electricity as @Bitcoin does @Lisk. One alternative to proof-of-work is delegated proof-of-stake, where stakeholders vote on a set of delegates who are allowed to create blocks and establish consensus on the network. It attempts to solve one problem which affects other proof-of-stake protocols, whereby those with the most stake will tend to dominate the economics of the system, because in delegated proof-of-stake smaller stakeholders can always exert proportional influence by way of their votes. A particularly strong and vibrant community stands behind Lisk, and one of the most hotly debated topics is its delegated proof-of-stake system. There are only 101 delegates forging new blocks at any one time. One way for delegates to provide their voters with an incentive is to pay them back a percentage of the LSK they generate from forging. Voting for pools that redistribute a percentage of their rewards is an easy way for delegated proof-of-stake network participants to realise additional value. Full stack developer at Lisk, Will Clark, who studied philosophy at Oxford, finds the whole crypto-economics thing enthralling.