Can Math Save Us When Governments Fail?
In the real world where fiat (paper) currencies are still the norm, we trust governments to manage the supply of money and protect us from risks like hyperinflation and counterfeiters.
We wanted Jewelz to be the first truly decentralized cryptocurrency that anyone can mine (not just the privileged few with access to supercomputers
In most developed countries, governments do a good job controlling inflation to keep the economy strong and to prevent our money from losing value too quickly. But in many cases, governments fail to strike a balance.
For over a decade, cryptography experts have been saying that there’s a different/better way to control the supply of money. What if you could use math instead of politics?
It turns out you can. The supply and distribution of money can theoretically depend on a number of different variables or conditions …
For Jewelz, our new cryptocurrency, we chose to make the distribution of coins more equitable. We wanted Jewelz to be the first truly decentralized cryptocurrency that anyone can mine (not just the privileged few with access to supercomputers
Jewelz is Decentralized by Design (not just in theory)
In a previous article, I introduced our new Jewelz cryptocurrency. In this article, I want to give you a closer look at why Jewelz is an important and unique development in the cryptocurrency world.We realized early on in the development process that we had to find a new way to mint (or mine) Jewelz: the solution needed to be both fair, so anyone could do it, and efficient.Our solution involves what we call the Serial Proof-of-Work (PoW) algorithm (patent pending), which is A LOT (about 300x) more energy efficient than the PoW algorithm used to mine Bitcoin. That means you can mine Jewelz without paying a fortune on your electricity bills … and you don’t have to shell-out thousands of dollars for high-powered processors. In fact, you can mine Jewelz with a regular computer.We also limit miners to a single mining address, so average miners can’t be squeezed out by miners with deep pockets and sophisticated mining operations.
A Quick Intro to Serial PoW?
Our Serial PoW algorithm doesn’t allow parallel processing, so regardless of whether you’re running on the latest GPU from Nvidia or a 4-year-old Macbook, you’re going to mine Jewelz at roughly the same speed.
Now, you might have heard that some cryptocurrencies, most notably Monero, use memory-intensive (rather than processor-intensive) operations that can also be performed on a regular computer. So how is Jewelz any different? Well, Monero has a different problem …
Cryptojacking malware is frequently used to infect machines or internet browsers with Monero mining scripts. Many websites, including popular torrenting site Piratebay and even trusted news sites like Salon are using their visitors’ computers to mine Monero – often without their knowledge. Of course, the mined currency goes straight to their wallet, not yours.Pretty shady, huh?
Cryptojacking can be extremely profitable for hackers (with estimated yearly earnings of around US$100 million for hackers controlling large botnets). And it goes against the original spirit of cryptocurrencies.So obviously the Monero model doesn’t work because it’s not secure.
We took a completely different approach, using a secure processor-based operation that uses about 0.3% of the energy consumed by PoW. And we restrict miners to a single address so it’s not possible to mine Jewelz with someone else’s computer.In more technical terms …
Instead of allowing miners randomly select a ‘nonce’ to test in the Serial PoW algorithm, we use what’s called a deterministic nonce generation algorithm, which forces mining operations to occur in a serial manner (one after the other, in a linear sequence). This way, miners only have to allocate a single CPU thread to mining. And parallel processing, a tactic employed by powerful ASICs and GPUs to mine most other cryptocurrencies, cannot be used to speed up the process.
A CPU is actually faster than a GPU for mining jewelz because, as a serial process, you want the single fastest core working on mining. And that’s going to be on your PC.
Click here for a full technical description of the mining process.This means you can mine Jewelz (very efficiently) while running other applications on your home computer. In fact, we’ve built applications (more games and educational resources are in the works) designed to interact with the Jewelz blockchain and mine Jewelz in the background.