Comment on “Proof-of-work” proves not to work for spam prevention (2004) [pdf]parentComments−lisper4yChia had a proof of work mechanism that uses disk storage instead of computationAnd how do you think those disks get made? (And how do you run those disks without expending energy?)−mgraczyk4yThey do use energy, but it's very small compared to other economic activity.For example, suppose Bitcoin consumed as much energy as a few households. Would that be acceptable?Alternatives aren't quite that efficient, but my point is that the relative energy consumption matters a lot.−lisper4ysuppose Bitcoin consumed as much energy as a few householdsThat's not possible. The marginal cost of mining has to equal the value of the coins mined.−mgraczyk4yThe cost can come from things that do not consume energy, for example fabricating a complex chip that includes rare materials.−lisper4yAnd where do you think those rare materials come from?−slavik814ySo, proof-of-gold?−xg154yFor example, suppose Bitcoin consumed as much energy as a few households. Would that be acceptable?But in this scenario, Bitcoin would consume rising amounts of some other resource, say SSDs or network capacity.
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And how do you think those disks get made? (And how do you run those disks without expending energy?)
They do use energy, but it's very small compared to other economic activity.
For example, suppose Bitcoin consumed as much energy as a few households. Would that be acceptable?
Alternatives aren't quite that efficient, but my point is that the relative energy consumption matters a lot.
That's not possible. The marginal cost of mining has to equal the value of the coins mined.
The cost can come from things that do not consume energy, for example fabricating a complex chip that includes rare materials.
And where do you think those rare materials come from?
So, proof-of-gold?
But in this scenario, Bitcoin would consume rising amounts of some other resource, say SSDs or network capacity.