• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
Buy Neo Pepe
No Result
View All Result
🚀 BUY NEO PEPE PROTOCOL 🚀
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
  • 200 FREESPINS
Breaking News: Tether Announces Strategic Partnership To Combat Stablecoin Misuse
🚀 BUY NEO PEPE PROTOCOL 🚀
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
  • 200 FREESPINS
Bitcoinist.com
No Result
View All Result
Breaking News: Tether Announces Strategic Partnership To Combat Stablecoin Misuse

Bank of Canada: Proof-of-Work Beats Alternative Consensus Systems

Wilma Woo
by Wilma Woo
6 years ago
·
Posted in News, Blockchain, News teaser
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Canada’s central bank has championed proof-of-work (PoW) algorithms as part of a new research paper on Blockchain consensus.


‘Irretrievable Sunk Costs’

In its Staff Working Paper released this week, Bank of Canada (BoC) said PoW, used by Bitcoin, held more promise than alternative proof-of-script (PoS) algorithms found in various altcoins.

The highlighting of PoW came courtesy of Satoshi Portal CEO and cryptocurrency commentator Francis Pouliot, who uploaded the results to social media July 23.

“We have focused exclusively on PoW protocols to achieve consensus. Many other protocols have been discussed that try to save on the costs associated with running a blockchain. Protocols based on proof-of-stake (PoS) allocate the right to update the blockchain randomly across users. The chance of any user to win the right is linked to his stake in the system, for example, the number of units of cryptocurrency the user owns,” the paper reads.

However, these alternative systems usually do not possess a key feature of PoW: one needs to spend a large amount of resources to be successful in cheating, and being unsuccessful means that one has incurred a large, irretrievable sunk cost.

"Proof-of-stake alternatives do not have a key feature of Proof-of-work: one needs to spend large amount of resources to be successful in cheating, and being unsuccessful means that one has incurred a large irretrievable sunk cost" -Central Bank of Canadahttps://t.co/q9kmWzmKwz pic.twitter.com/4wPFNVi0jO

— FRANCIS – BULLBITCOIN.COM (@francispouliot_) July 24, 2018

The Mixed Case For PoW

BoC has been traditionally critical of Bitcoin-like decentralized cryptocurrencies in line with many other central banking institutions.

In December 2017, governor Stephen Poloz likened cryptocurrency to gambling, while the BoC nonetheless spearheaded research to understand the phenomenon.

Last week, Bitcoinist reported on the results a two-year-long consumer study by the bank, which revealed 85 percent of Canadians were aware of cryptocurrency.

Canada

“The Bank of Canada’s interest in bitcoin is to understand whether its adoption and usage by Canadians could affect the financial system,” it stated analyzing the findings.

In May, research into algorithm security cast a somewhat less flattering spotlight on PoW coins, noting their ‘hackability’ in terms of launching a 51 percent attack to gain control of the blockchain and double spend funds.

Upgrading to PoS, researches suggested, would be one option to solve such vulnerabilities.

What do you think about Bank of Canada’s research? Let us know in the comments below!


Images courtesy of Shutterstock, Twitter

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Wilma Woo

Wilma Woo

Follow

Full Profile

Related Posts

QFSCOIN Launches High-Yield Mining Contracts And Allows Global Investors To Earn Bitcoin And Dogecoin

Regulated By US Law And SEC: QFSCOIN Launches High-Yield Mining Contracts And Allows Global Investors To Earn Bitcoin And Dogecoin

2 weeks ago
Ceasefire

BREAKING – Iran-Israel Ceasefire Sparks Crypto Bounce–Details

2 weeks ago
blockchain

$340M Bitcoin Bet: The Blockchain Group Pushes Institutional Crypto Wave In Europe

4 weeks ago
Ripple

Blockchain Alliance: Ripple And Japan’s Web3 Salon Spark Asia Innovation

4 weeks ago
Blockchain

Ending Food Lies: Blockchain Could Revolutionize What We Eat, Study Reveals

1 month ago
trump

Trump: manovra da 3$ miliardi in Bitcoin

1 month ago
Please login to join discussion

Premium Sponsors

Press Releases

  • More and more ADA and ETH holders are quietly turning to a...

    15 minutes ago
  • More and more XRP and ETH holders are quietly turning to...

    17 minutes ago
  • Bitget Partners With UNTOLD Festival, Where Web3 Takes The...

    1 hour ago
  • Cloud Mining

    Missed Ethereum’s Surge? Don’t Miss BTC Miner’s Cloud...

    2 hours ago
  • MEXC June Token Listings Deliver Up to 9,100% Returns...

    2 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Buy Neo Pepe

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
  • 200 FREESPINS
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.