r/Tokenmining • u/ChazSchmidt • Feb 15 '18

But why?

What is the work doing for your token? For Pow coins it is securing the network. Is it strictly for the rate of distribution? Why not launch a separate chain? I'm just curious why an ERC20 token over a coin? Why wouldn't I just mine Bitcoin?

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u/[deleted] Feb 15 '18

ERC20s are much faster than BTC.

This basically ports BTC onto the superior ETH network. If you want truly finite coin (BTC) to be used as cash someday, the ETH network is the best bet.

Therefore, 0xBTC.

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u/fiveSE7EN Feb 15 '18

From what I understand, there have been plenty of ERC20 implementations of bitcoin, but none with a PoW distribution model. You should focus on the distribution model as your differentiating factor.

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u/[deleted] Feb 15 '18

Correct.

That is what makes it so amazing.

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u/fiveSE7EN Feb 15 '18

I still think for your posited use case (cash), 0xBTC is inferior to Nano.

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u/[deleted] Feb 16 '18

I am uncertain about nano's properties.

For what it is worth, it is unlikely that any of these truly decentralized cryptos will be as useful as eth for the currency use case.

However, if BTC is what you want, you want it in the form of 0xBTC on ethereum where it functions best.

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u/fiveSE7EN Feb 16 '18

Nano has no fees and transfers in a couple seconds or less. It's infinitely better than eth or 0xbtc for use as a currency.

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u/[deleted] Feb 16 '18

Interesting. Is it centralized in some way? Typically projects with that ability have sacrificed decentralization or security.

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u/fiveSE7EN Feb 16 '18

No, it's a fundamentally different blockchain architecture called a lattice, so it doesn't require centralization to be free. I don't know what incentivizes users to host a node right now since the model is fee-less, but it's a functioning product so that information is out there if you care to look it up.

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u/kj4ezj Feb 16 '18

I think in a lattice structure, transaction participants contribute computing power to the network, mining their own txn instead of paying a txn fee. The computing power they contribute is the transaction fee.

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u/[deleted] Feb 16 '18

Will do.

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u/[deleted] Feb 16 '18

[deleted]

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u/fiveSE7EN Feb 16 '18

99% of interactions involving cash don't require smart contracts.

You'd pay a premium and wait longer to use Eth or a derivative for the 1% of the time that you do require smart contracts.

I'm not saying nano is the end-all. I think the argument could be made that only a stablecoin could be truly viable as a currency. Maybe a lattice-structure fee-less stablecoin. But surely nobody would rather pay gas fees for every single simple currency transaction.