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Johndcook
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Why use hash puzzles for proof-of-work?
- Bitcoin and many cryptocurrencies use hash-based puzzles for proof-of-work, like tweaking transaction blocks to meet specific criteria.
- Litecoin and Dogecoin use the scrypt hash function, while others like Monero utilize Equihash or RandomX for proof-of-work.
- Hash puzzles are chosen for their difficulty to solve but ease to verify, even with quantum computing advancements.
- Cryptocurrencies rely on hashing functions' security for their integrity.
- While hash puzzles prove computational work, they do not serve any practical use beyond cryptocurrency mining.
- Efforts like FoldingCoin, which focus on solving useful problems like protein folding, have not gained widespread adoption.
- Practical work-based cryptocurrencies face challenges due to divergent incentives and potential disruptions by market participants.
- Hash-based problems in cryptocurrencies have adapted over time to maintain their difficulty.
- The use of practical problems for proof-of-work could open the door to rapid disruption if solved mathematically.
- Despite the potential benefits, cryptocurrencies have largely favored hash puzzles for their proof-of-work mechanisms.
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