DYNAMIC DERIVATIVE BLOCK CHAIN TECHNIQUE

Abstract

Currently block chain is being used as the distributed ledger for various purposes. In systems that emphasize the requirement of authentication (esp. banking/crypto currencies) various techniques are used to maintain the sanity of the system. The predominant ones are (i) proof of work and (ii) proof of stake. Systems using proof of work tend to use increasingly large amounts of computing power and in-turn resources like energy and processor time. Proof of stake on the other hand uses the already present stake of miners* in the ledger. While one can be controlled with more than half the computing power and the other can be controlled with excessive stake in the ledger. Both seem to have their disadvantages. We shall try to work on the proof of work technique to better it for application as a distributed ledger authentication system. Since the proof of work system is the first authentication system we have come up with a few techniques to better the system. In order to work out the entire architecture of the new proposed system we have discussed in brief the structures of the newly proposed blocks and how the new methodologies will affect the block chain and the associated systems that rely on it. The applications of the proposed systems are primarily in crypto-currency and implications to such systems will be considered in detail.