Delegation, or delegated proof of stake, is something different and

Question

Delegation, or delegated proof of stake, is something different and

ORV is kind of similar to it. I don't see how that is centralised though? Nano is one of the only currencies that decentralise over time

#cryptocurrency #english #nano

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18.10.2021

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Floepst (I never PM first) Автор вопроса

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But nano isn't proof of stake?

Nope, it's open representative voting. It can look similar to proof of stake but it's different. With Open Representative Voting, you get a certain voting weight based on your holdings (so yes, your stake in the network), then you can assign that voting weight to a representative, that is a node with a voting weight based on all the funds that are delegated to it. This representative then uses that voting weight to vote on conflicting transactions. So let's say someone tries to send his funds to two different people, only one of the transactions can be valid. So the representatives vote on which one they think is valid (this is an automatic process) and the one that gets the majority of votes will be approved, the other one rejected. It's decentralised because people can change who they vote on at any time, for free, near-instantly. You can see how many votes each representative has. This way, if one representative has more than a few percentage of votes, people can delegate it to someone else so that the voting weight is more evenly distributed. The only way to break that system would be to 1. Own more than half of all nano in existence. This is basically impossible because buying half of the entire nano supply would drive up the price so much that it's basically impossible to afford, and if you bought up so much nano there wouldn't be any incentive to break the system. All your investment would go to 0. 2. More than half the nano supply has to be delegated to 1 node. But because people can see how much voting weight each node has, and they can change it at any time for no cost, this is also almost impossible to do.

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18.10.2021

Letterboxing · Accepted Answer

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But nano isn't proof of stake?

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18.10.2021

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Delegation, or delegated proof of stake, is something different and

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