blocks". Beneficiaries and Lossers from Txn Fees The total amount of demurrage fees collected annually varies between 0 and 5 of the total money supply. Coin age is equal to the number of coins sent times the average age on these coins. Monopoly is still possible under proof-of-stake. If send, Coin_age_t.

As blocks are mined, keys are selected for auditing based on random selection. In order to maintain a good reputation, he would refrain from double spends and maintain service provision. For.1, 1 out of 100,000 blocks will satisfy this criteria. 2) Work submission is hashed 10 times consecutively. If there are several blocks of the same height, an address should not sign more than one of them. Once a block achieves a majority (and some more time is allowed for this majority to spread in the network it is extremely unlikely that the network will ever switch away from this block. Even for extremely small hash aggregate rates, it is not practical to privately mine at a rate 10 billion times faster than all other miners combined. For.5, the attacker will succeed if he controls 51 of the aggregate hash rate.

If the monopolist chose a malicious strategy and maintained his control for a long period, confidence in bitcoin would be undermined and bitcoin purchasing power would collapse. Long-term Chain Evaluation 1) Comparison of two long chains is based on a simple sum of block difficulty, just as in bitcoin. Even very weak incentives are sufficient in this case. Each consecutive hash maps to an individual unspent output in the blockchain. Despite these exceptionally low fees, a proof-of-stake network will be many times more costly to exploit than the proof-of-work network. A node will reject any new block found if it contradicts a 6-block deep branch it is already aware of and currently considers valid. For.01, 1 out of 10 billion blocks will satisfy this criteria. 9) Go to step 1 Note: This process is simultaneous so that multiple block hashes can circulate in the network attempting to collect five signatures and generate PoW/PoS block pairs. Difficulty target periodically adjusted so that 1 PoW block arrives every 10 minutes. Collectively, these fees do not make coin owners better or worse off. Proof of work Miners use their hashrate to find blocks and build the blockchain exactly as with the pure PoW system.