Developed with one of the safest and most reliables algorimth, Scrypt:In
cryptography, scrypt (pronounced "ess crypt") is a password-based key derivation
function created by Colin Percival, originally for the Tarsnap online backup
service. The algorithm was specifically designed to make it costly to
perform large-scale custom hardware attacks by requiring large amounts
of memory. In 2016, the scrypt algorithm was published by IETF as RFC 7914.
A simplified version of scrypt is used as a proof-of-work scheme by a number
of cryptocurrencies, first implemented by an anonymous programmer called
ArtForz in Tenebrix and followed by Fairbrix and Litecoin soon after
password-based key derivation function (password-based KDF) is generally
designed to be computationally intensive, so that it takes a relatively
long time to compute (say on the order of several hundred milliseconds).
Legitimate users only need to perform the function once per operation (e.g.,
authentication), and so the time required is negligible. However, a brute-force
attack would likely need to perform the operation billions of times; at
which point the time requirements become significant and, ideally, prohibitive.
>Previous password-based KDFs (such as the popular PBKDF2 from RSA Laboratories)
have relatively low resource demands, meaning they do not require elaborate
hardware or very much memory to perform. They are therefore easily and
cheaply implemented in hardware (for instance on an ASIC or even an FPGA).
This allows an attacker with sufficient resources to launch a large-scale
parallel attack by building hundreds or even thousands of implementations
of the algorithm in hardware and having each search a different subset
of the key space. This divides the amount of time needed to complete a
brute-force attack by the number of implementations available, very possibly
bringing it down to a reasonable time frame.The scrypt function is designed
to hinder such attempts by raising the resource demands of the algorithm.
Specifically, the algorithm is designed to use a large amount of memory
compared to other password-based KDFs,making the size and the cost of a
hardware implementation much more expensive, and therefore limiting the
amount of parallelism an attacker can use, for a given amount of financial
What Proof of Stake Is And Why It Matters
>Proof of Stake is a proposed alternative to Proof of Work. Like proof
of work, proof of stake attempts to provide consensus and doublespend prevention
(see "main" bitcointalk thread, and a Bounty Thread). Because creating
forks is costless when you aren't burning an external resource Proof of
Stake alone is considered to an unworkable consensus mechanismIt was probably
first proposed by Quantum Mechanic. With Proof of Work, the probability
of mining a block depends on the work done by the miner (e.g. CPU/GPU cycles
spent checking hashes). With Proof of Stake, the resource that's compared
is the amount of Bitcoin a miner holds - someone holding 1% of the Bitcoin
can mine 1% of the "Proof of Stake blocks".Some argue that methods based
on Proof of Work alone might lead to a low network security in a cryptocurrency
with block incentives that decline over time (like bitcoin) due to Tragedy
of the Commons, and Proof of Stake is one way of changing the miner's incentives
in favor of higher network security.