Where there are people, there are interests.
Who Moved My Cake
Town Quiz Enthusiast
My scalp is itchy, maybe I need to use my brain more!
People have discovered that when a porter collects a tip for a container, the tip becomes more valuable. Although the tip is not a direct fiat currency, it has a certain exchangeability. People become crazier in trying to answer questions because in BTC, the more capable one is, the more they earn. It's as if people are constantly solving a math problem, and the more people solve it correctly, the more tips they receive.
However, there are always people who want to secretly work hard and amaze everyone. So they solve one question after another, but they don't put the containers on the train. Instead, they accumulate many answers, hoping to receive more tips all at once. Some people have indeed succeeded, while more people prove an old saying: there is always someone who works harder than you. (This involves a concept: if multiple nodes gain the right to package, the longer chain will be recognized by the public chain)
Some people understand the power of numbers and organize a group of people to study a question together, coming up with an answer and distributing tips based on each person's contribution (mining pools appear, where ordinary people provide computing power to the mining pool and receive a portion of BTC based on their computing power).
- The consensus mechanism in BTC uses Proof-of-Work (POW), where the more blocks are packaged, the more rewards are given.
Compound Interest
Being a town quiz enthusiast is great, but it requires too much brainpower. Those with good brains reap all the benefits. Is there a way to prove my abilities without exerting so much brainpower?
The village chief looked at a large group of enthusiastic villagers and then at the village's granary, sighing: these people solve questions every day, and the more questions they solve, the more they eat. Mental labor actually consumes more food than physical labor. We can't let them continue like this. (Note: POW mechanism is extremely resource-wasting and energy-consuming)
The village chief approached the train conductor and explained the situation, saying: if they continue like this, I will announce village rules to forcibly prohibit them from solving questions.
The train conductor thought for a moment and established a new rule:
Mortgage your tips to the bank at the east end of the village. The more you mortgage and the longer the duration, the more it shows your abilities. You can then exchange them for hints to make it easier to solve the answers.
The village chief looked at the village's granary and smiled happily, mortgaging all of his possessions to the bank.
- The consensus mechanism in ETH changed from POW to Proof-of-Stake (POS), where staking is equivalent to proof of computing power, reducing resource waste.
- In reality, nodes with more collateral are more likely to be selected as validators. Validators are responsible for verifying blocks. If the block is verified correctly, the validator receives a reward, rather than receiving hints for the answers.
I'm Also a Representative
Every home has its own rules, and every country has its own laws.
The villagers were mortgaging their belongings like crazy, and the village chief was at a loss. The children accompanied them every day but couldn't gain anything. They argued and made a fuss, thinking that being a town quiz enthusiast was better.
The village chief was cornered by a group of children and thought for a moment before saying, "Children, we must be fair and reward those who work hard. Everyone should be able to participate in the construction of the train."
Before he could finish speaking, the village chief was hung on a crooked tree.
The village chief approached the train conductor again and said, "Let's modify the rules; otherwise, we'll both end up hanging on a tree next time."
The train conductor thought for a moment and added some new rules:
- In the future, the value of mortgaged items can be converted into pick coins. Pick coins can be used to vote for people you think are capable, allowing them to represent you in packaging the goods onto the train.
- The top 10 people with the most votes will be selected to solve the questions. Others do not have the right to solve the questions.
The train conductor looked at the people voting and hummed a little tune happily: voting for representatives, these representatives compete, controlling the number of people and reducing the consumption of food by this group. It also improves the efficiency of packaging goods onto the train and avoids having to hang on a tree with the village chief. Killing four birds with one stone.
PS: The specific concepts of POW, POS, and DPOS may vary slightly, but the aim is to bring the story full circle.