Why MVC chose POW

The value provided by blockchain technology is decentralized security, and security can be measured by the effort of attack. A chain is as secure as it is costly to attack.

The product provided by the consensus nodes of the blockchain is security, and the consensus nodes are producers of network services. We also know that there is a basic law in economics. In a perfectly competitive market, the marginal revenue of producers in equilibrium is equal to the marginal cost. That is to say, if the consensus algorithm of the blockchain creates a perfectly competitive market, how much security is provided will require as much production cost; as much marginal security as you want to provide, you will need to pay as much marginal cost.

It is the characteristic of POW to disclose the cost to everyone in the clearest way.

POW IS COMPLETELY "PERMISSIONLESS"

You can buy mining machines and electricity to join the ranks of block producers as today's miners do not need to give you any form of permission. You might say, I still need to buy mining machines and electricity, isn't this a form of permission? Yes, from a lower level, this is also a permission. But unfortunately, among all proof-of-XXX, this is already the most decentralized form of licensing. After all, the degree of decentralization of mining machine production and power resources is much higher than that of various tokens. We should always aim for as much decentralization as possible, otherwise we can just go back to the centralized system.

TWO ADVANTAGES OF POW

• Block producers and key users in the ecosystem are decoupled. Key users in the ecosystem refer to service providers such as exchanges and wallets that provide services around the blockchain. They provide high-quality services to a large number of users and gather a large number of users and transactions. In POW, the miner group and the exchange/wallet are independent. They have different professional divisions of labor, and obtain returns through different professional knowledge and in different ways. Key users cannot convert their own business advantages into advantages in the agreement, and miners also have no way to transform one's own advantages in the agreement into the advantages of the key users. In POW, checks and balances can be formed between developers, users, and consensus nodes.

• The consensus of POW is open and full of fierce competition. Maybe a mining pool/miner can do "this" in a short period of time, but since new miners are always free to join, it is very difficult to do "this" for a long time without upgrading, and so fierce competition will create a fully increasingly fair and competitive market.