As the world becomes more connected through the Internet, we see new avenues for the exchange of goods, services and ideas across disparate and distant borders. Today, evolving socio-economic structures and financial systems fostered through online require a new global currency to create a healthy decentralized financial system and provide worldwide financial inclusion.
Recently, we conducted a study of 1,000 U.S. consumers who were familiar with cryptocurrency to learn about their opinions and concerns around the technology. What did we find? Volatility is cryptocurrency’s largest roadblock to mass adoption.
Cryptocurrencies were created with the vision of being decentralized, streamlined units of value that can be used worldwide without manipulation. Although cryptocurrencies have gotten a lot of hype, none exist today that function as a true currency.
Due to advancements in technology, society has shifted its spending tendencies and the majority of people are using cash less and less. In fact, 86 percent of respondents make less than half of their purchases with cash. With an overwhelming majority primarily using electronic forms of payment, it’s no wonder using a cryptocurrency doesn’t seem so far-fetched: over 90 percent of respondents would use a cryptocurrency that is stable and accepted as a form of payment almost everywhere.
However, enthusiasts and skeptics alike agree volatility is the biggest issue surrounding cryptocurrency — almost 90 percent worry about volatility. Of those who own cryptocurrencies, 60 percent cited volatility as the most inconvenient aspect of using cryptocurrency.
Of the respondents who did not own any cryptocurrencies, almost half specified volatility as the primary the reason they had not invested. More than three-quarters would be more likely to purchase cryptocurrencies if they were less volatile.
Other interesting facts include:
- More than half have used them to purchase goods and services online
- 46 percent had used cryptocurrency to purchase goods or services related to gaming, 35 percent had purchased gift cards and 16 percent had purchased food
- Surprisingly, Red (53 percent), Blue (61 percent) and swing states (57 percent) all felt tepid in their belief of the U.S. government’s ethicality
- 82 percent of those who did not own any cryptocurrencies would like to own some in the future
Proof-of-stake is responsible for record keeping in Meter’s blockchain system. To prevent censorship, Meter allows a big pool of validators (participating nodes that can potentially keep the transaction records). At the beginning of each epoch, a group of validators will be randomly selected from the validator pool to form a committee. During the epoch, only the validators within the committee can create and vote on the blocks, following a BFT style consensus. This ensures high performance and instant finality, both of which are desirable for financial applications.
The proof-of-work miner and proof-of-stake validators maintain separate proof-of-work and proof-of-stake chains. The two chains only interact at end of every epoch, when they cross reference each other. This ensures it is impossible to go back in time and create new chains (called a long range attack).
Because of the changes in the economic and game design, the proof-of-value consensus is able combine the benefits of both proof-of-work and proof-of-stake while avoid the problems in both. As we know, in Bitcoin or other proof-of-work cryptocurrencies, the network hashing rate directly correlates to the price or the market cap of Bitcoin. In Meter, the hash rate only correlate to the increment of market cap.
Such a difference makes Meter greener than any traditional proof-of-work cryptocurrencies. Based on our estimation, to support an economy similar to the United States, the annual money spent in mining would be similar to the annual budget of U.S. Mint and U.S. Engraving and Printing. Proof-of-work is able to introduce true randomness and a notion of time. These are important to prevent censorship and attack, and extremely hard to obtain in proof-of-stake.
The combined proof-of-value consensus is therefore permissionless, green to mine, and extremely fast, while remaining highly decentralized. We have a target of 1,000 transactions per second in a pool of more than 1,000 validators on a single chain. There is nothing preventing Meter from further unlimited scaling through sharding and sidechains.
Meter’s New Study Shows Volatility is the Biggest Barrier to Mainstream Crypto Adoption0 Comments As the world becomes more connected through the Internet, we see new avenues for the exchange of goods, services and ideas across disparate and distant borders. Today,...
Creating The First TRUE “Cryptocurrency” by Re-Designing the Consensus.0 Comments Currency solves the mismatch in time and demand between value creation and value consumption by providing a token to present the values. It functions as a temporary store of value, a...