About the First Strictly-Dominant Cryptocurrency
Most announces of previous blockchains can be classified in the following groups:
- better hash algorithm (e.g., Litecoin)
- not using Proof-of-Work (e.g., Peercoin)
- better scripting/smart contracts (e.g., Ethereum)
- anonymous (e.g., Zcash, Monero)
- highly scalable (e.g., Zilliqa)
- a combination of the previous ones (e.g., Cardano)
Backed by these technical advances, most of them hoped to achieve big market capitalizations/transaction volume and displace previous cryptocurrencies (i.e., the elusive Bitcoin 2.0), only to learn that they were just scratching some percentage points of the market share of the first-mover, Bitcoin.
What is wrong with this approach to blockchain innovation is that none proved how their technology would dominate others (in any sense of these words).
Fortunately, we demonstrate that the most efficient Sybil-resistance mechanism (Zero-Knowledge Proof-of-Identity) strictly dominates the mining of any other cryptocurrency (i.e., mining our cryptocurrency is a Nash equilibrium and the Evolutionarily Stable Strategy).
In our blockchain, miners don’t waste big amounts of energy nor own special hardware, neither stake volatile cryptocurrency for long periods of time: they just need to anonymously provide their real-world identity (e.g., National Identity Card or ePassport). As a result, our cryptocurrency should be the most profitable to mine and their first preferred choice.
Real cryptographers don’t make you pay the Price of Crypto-Anarchy.