Why we need POW
Satoshi Nakamoto applied POW to bitcoin, which provides two features for bitcoin: one is to the security of the maintain the other is to realize the distribution of tokens. POW mechanism provides the basis for the steady development of bitcoin. Around bitcoin and this mechanism, a series of industrial chains have been developed, such as mining machine manufacturers, mine service providers, mine pool service providers, chip producers, and so on. It is these ecological participants who maintain the security of the bitcoin network and create the current market value.
Many people accuse POW of useless calculation and wasting a lot of computing power. But it is this kind of waste, or cost, that makes the market value of bitcoin today. In the past, we used to measure a country’s economic strength by generating electricity, but in fact, we still have a lot of electricity wasted, such as air conditioning in empty buildings working all night, city lighting with bright lights.
In fact, it is a waste that makes human society develop rapidly. We should regard POW as the input of generation. Only when users participate in the pow, consume electricity, and invest money will they pay more attention to the construction of bitcoin. A longer payback cycle will make users more loyal. Enterprises spend a lot of manpower and material resources on advertising instead of developing the product itself. Isn’t it to make users more loyal? Is this waste or production?
Some users are trying to use POS to develop their own projects, saying that it is more energy-saving and easier for users to participate, such as ADA. Even on Ethereum’s defi, we prefer to use the way of stake assets to distribute the initial tokens. For example, stake eth in exchange for AAA tokens. It’s really faster than POW to get users involved, but it’s also faster for users to escape. Especially in the current trend, the start of the project is becoming more and more unfair, people who have mastered the assets are more likely to get chips, the rich are getting richer, and the poor become the last takers. What did the rich give? It may be a little gas fee. They have no contribution to the project, let alone loyalty. I believe that if it goes on like this, defi will be in big trouble.
If you want to save defi, you should let users waste their resources and pay the cost. Encourage waste. Human society grows up in waste. It’s time to consider using POW to complete token distribution in defi now.
