Author: Iris Li
Mr. Dong Zhao, the founder of Dfund, he emphasised in his weibo (China local social media platform) that POW should be the most efficient method to develop public chains. Basically, the proof-of-work system refers to the original consensus algorithm of a blockchain network. Within the blockchain industry, this algorithm is utilised to confirm transactions and produce new blocks to the chain.
Miners compete against each other to finish transactions on the network and get rewarded with the proof-of-work system.
Nevertheless, he pointed that it will be no problem for alliance chains and private chains to use POS. Unlike the proof-of-work, with the proof of stake system, the creator of a new block is chosen in a deterministic way, depending on its wealth that is also defined as stake. The principle of most alliance chains and private chains is centralised and thus POS system could work.
“Public chains should not believe people but mathematics and machines, which is the core reason why public chains should apply POW system. However, there is no need for some alliance chains and private chains to be decentralised and therefore these chains could be applied based on POS system.”
Dfund was founded in July 2017 by Mr Dong Zhao who is a well-known professional in the digital currency field. Dfund focuses on investment in the cryptocurrency sector and provides end-to-end investment banking services for the invested projects. Dfund will identify and select blockchain projects based on valuable investment principles through professional teams. Dfund has invested in many high-quality blockchain projects such as TNB, QASH, AELF, Cybermiles, LLT, MobileCoin and Beechat, etc.