Blockstack, an open source blockchain project, with a 7,000-strong community, backed by more than $75 million in investment from the likes of Union Square Ventures, Y Combinator, Lux Capital, and Naval Ravikant – is proposing a new, novel mining algorithm called Proof of Transfer, or “PoX” which combined with the power of Bitcoin could enable a new set of possibilities for developers building a user-owned internet.
View PoX whitepaper here.
- The user-owned internet is anchored in Bitcoin, the most secure blockchain.
- The user-owned internet emerges around a DeFi ecosystem like Ethereum.
- The user-owned internet is built on a new blockchain ecosystem specifically tailored for it.
He added in a press release:
“We believe that Bitcoin can become the flag of technology and most people will get introduced to crypto through Bitcoin. Bitcoin is already the king of proof-of-work (PoW), so by extending access and creating new ways to leverage the security and trust of the Bitcoin network, we’re activating the fundamental building blocks of a user-owned internet. In other words, Proof of Transfer allows everyone to benefit from Bitcoin’s security without needing to modify Bitcoin.”
If adopted as part of the new blockchain proposals comprising Stacks 2.0 expected later this year, developers, For the first time, would be able to use Proof of Transfer to launch new blockchains that are anchored in Bitcoin’s security.
Further, PoX can give incentives to earn Bitcoin rewards to participants of such new blockchains. Such Bitcoin rewards were not possible before PoX.
These rewards can potentially be used for use cases like consensus participation, ecosystem developer funds, and incentives for specific players.
Proof of Transfer is proposed as part of Blockstack’s anticipated new blockchain Stacks 2.0, which is slated to contain a number of key improvements to Stacks 1.0. Proof of Transfer itself generalizes the concept of proof-of-burn. PoX uses the proof-of-work cryptocurrency of an established blockchain to secure a new blockchain. However, unlike proof-of-burn, rather than burning the cryptocurrency, miners transfer the committed cryptocurrency to some other participant(s) in the network.
This allows network participants, who are adding value to the new cryptocurrency network, to earn a reward in a base cryptocurrency by actively participating in the consensus algorithm. PoX encourages a model where there is one extremely secure proof-of-work blockchain, in this case, Bitcoin. Other new blockchains are anchored on the secure PoW blockchain instead of having separate PoW chains.
According to the whitepaper released by Blockstack PBC and recent Stacks Improvement Proposals, Proof of Transfer would allow the Stacks 2.0 blockchain to (1) reap the security benefits of Bitcoin, (2) possibly reward Stacks (STX) holders for contributing to the network, (3) offer secure, predictable Clarity Smart Contracts and more expressive features without modifying Bitcoin’s core protocol, and (4) allow any project to spin up their own blockchain that has the security properties of Bitcoin.
Blockstack’s decentralized computing network already lets developers build secure, privacy-focused applications that ‘Can’t be Evil’ – putting users, not corporations, in control of their personal data. This Blockstack framework supports over 400 decentralized applications, including solutions for blogging, fundraising, and creative collaboration. Combined with Blockstack’s existing developer tools, Proof of Transfer can unlock the full potential and value of Bitcoin; setting the stage for true digital asset ownership and critical further innovation in Web 3.0
The company is no stranger to precedent-setting, and in 2019, it became the first company in U.S. history to receive SEC qualification for its digital token offering.
Stacks 2.0, which includes the proposals for Proof of Transfer is expected to be launched in Q2 of this year. If you would like to learn more about Stacks 2.0, please go here. and register to receive more information.
Blockstack PBC is the company behind Blockstack, the privacy-centric, decentralized computing network pioneering applications that return online data ownership to developers and consumers. Founded in 2013 and headquartered in New York City with offices in Hong Kong, Toronto, Barcelona and Washington state, Blockstack PBC is funded by Union Square Ventures, Y Combinator, Lux Capital, Digital Currency Group, Naval Ravikant and others. For more information, please visit blockstack.org.
- BlockConf DIGITAL Announces Epic 48-hours Online Blockchain Conference - April 7, 2020
- Global Virtual Earth Day Event Planned for April 22nd EST From The Blockchain for Social Impact Coalition - April 7, 2020
- ConsenSys’ Health Division Kicks Off STOP COVID-19 International Ethereum Hackathon – April 13, 2020 - April 7, 2020
- Bitfinex Cryptocurrency Exchange to Offer Staking Rewards Program - April 6, 2020
- European Commission Backed Blockchain Organisation INATBA Joins WEF COVID Action Platform to Address Global Challenges - April 6, 2020
- Blockchain-Fueled Company Mateon Develops Phase 3 Clinical Drug Candidate, Against COVID-19 – OT-101 - April 6, 2020
- US Lawyers Go After Cryptocurrency Ecosystem with Multiple Class Action Suits Against Exchanges and Issuers - April 6, 2020
- Huobi Charity Joins Rally with Blockchain Community in Global Fight Against COVID-19 - April 2, 2020
- Binance Officially Absorbs CoinMarketCap in $400 million deal - April 2, 2020
- RealT Tokenises and Sells USD One Million in Real Estate On Ethereum - March 30, 2020
- IOTA Teams Up with Eclipse Foundation to Work on Decentralised Marketplace and Identity Solutions to Help Fight Pandemic - March 30, 2020
- University of Malta Students Develop and Use Blockchain Voting Application - March 30, 2020
- Japan’s Nomura Securities and BOOSTRY Issue First Blockchain Digital Bond Offering - March 30, 2020
- Opera Rolls out Update and Expansion of its Cryptocurrency-Friendly Browser Blockchain Architecture - March 30, 2020
- Hong Kong Bank Partners with Aegis to Focus On Asset Digitalization Using Blockchain Technology - March 30, 2020
- European Union Looking to Blockchain Technology for Defense? - March 30, 2020
- Tech against Corona (COVID-19) – Dutch Enterprise Blockchain Company TYMLEZ Helps Dutch Government - March 29, 2020
- Microsoft Patents Human Activity Mining for Cryptocurrency Systems – Data Generated Based on Body Activity can be Proof-of-Work - March 27, 2020
- Binance Kicks Off $5 Million Coronavirus Relief Campaign and Donates USD $1 Million - March 27, 2020
- Medici Ventures Keiretsu Companies GrainChain and Symbiont Working Together to Expand Global Operations - March 27, 2020
Also published on Medium.