The Problem With Dynex

What's up Sons it's blind ride with son Of a tech once again and welcome back to Yet another talking head video I know We've been doing blocks pretty Consistently but there's just too many Topics to cover and today we have yet Another one to discuss which is the Problem with Dynex of course this does Translate into my larger question of is It even possible to fully decentralize Proof of useful work at all and if so Who's going to be the first to do it Because I do not see any projects right Now that are capable of doing so let's Get into it Together Welcome back everyone so let's go ahead And hop into Dynex which is pretty much The first well-known or even mildly Successful proof of useful work Implementation it is basically utilizing The GPU Network to solve or basically Virtualize to a certain extent Neuromorphic Computing and then it rents That house right out for basically some Sort of solvers to various clients there Is a ton of technical details here that If we got into raise questions from Malicious intent to protecting you know To illegal activity whatever it may be There's a lot of stuff that is still From my perspective way up in the air With proof of useful work but from the Perspective of cryptocurrency there are

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Some very glaring issues here that we Need to discuss right and that is Because when you look at the way Dynex Works it is currently impossible to solo Mine it outside of utilizing a solo Mining pool and a solo mining pool is Essentially still just utilizing the Same pool software that ties to a single Wallet and then if you find a block for That wallet you get paid out as if you Were mining it solo but you do not have The capability of building your own node And Mining to that and that is all Centralized within the Dynex ecosystem So the devs have to support you to Really build a pool here and that is a Threat to decentralization and another Thing that I wanted to point out is it's Very easy to see this if you go look at Mining pool stats so as you can see on Mining pool stats there is With 40 of the hash rate and then ECA Pool at 35 percent we'll talk about this As well and then you have a few others And then the unknown is point three Percent most presumably that point three Percent is coming from the development Team or someone who knows the Development team running on their own on The unknown right on their own node and So essentially everything here has to be In a pool and So that obviously presents Uh attack vectors there was an issue Where Echo pool was essentially at more

Than 60 percent of the hash rate for a Long time and acapul actually Implemented a fix for this which was Requiring the mining pools to be no Larger than 40 percent of the network Which from a decentralized hash rate Perspective on pools sounds good until You realize what that actually means Which means the developers have control Over the way the pools operate okay so There is not a full decentralized you Cannot continue to operate the network Without the current developers Supporting the network in the case of Pretty much any decentralized proof of Work cryptocurrency if the developers Completely ditch out and nothing is Happening the community continues to Mine it and can still earn that coin and Then new developers can come along and Actually pick up where the old Developers left off that's not the case For Dynex in its current form and I Think this is the biggest disadvantage a Part of the problem here is in the Manner in which the proof of useful work Or the useful work portion of this is Distributed across the pools Dynex uses Something called malib endpoints to Distribute this work and for the longest Time there was really only one public Malib endpoint and that was for echapool This was a whole other centralization Issue where we were seeing essentially

All of the work that could come in in For proof of useful work going through One end point and that is a huge problem As well now as more pools have adopted Dynex we are starting to see more malib Endpoints we've been covering this on The episodes of blocks like mining for People Etc but it presents an Interesting topic which is is it even Possible at the end of the day to have a Truly decentralized proof of useful work Network and I don't know the answer to That because I'm not a developer right These are just questions from my Fundamental principal standpoint on Cryptocurrency going back to the white Paper of Bitcoin of like well this isn't Really what cryptocurrency is supposed To be now of course that could be Evolving and there are different parts Of blockchain technology that can Service it but when you look at this Essentially you are much more as a minor Of any of these networks a basically a Contractor then you have been in in the Past because at this point you are Performing work for individuals that are Running the proof of useful work and Selling that work to other individuals So you almost have this third party Situation that is required and while Like I stated I don't know the solution To this for proof of useful work Personally right I don't know that I

Just know that that does go against Fundamentally what crypto has been in The past okay so this is the biggest Problem I see with Dynex I'm seeing it Translated over into proof of useful Work across the board including flux in Some situations just managed differently Right because you'll be managing Presumably like you manage your nodes Etc through a centralized Wallet app Like zellkor so I'm not sure that this Problem is necessarily solvable maybe The developer of Dynex can give me some Idea is sumimoto or of course Daniel Keller could come on and give me some Ideas on how this problem would be Solved my leaning is is that this Problem won't be solved because this is A business model at the end of the day I Know that Dynex has come out with an Argument against it being a security but I do think that the way it is Functioning right now does lean itself Towards being closer to a security as Well I get the idea that you are buying A commodity to then basically purchase You know basically processing power on The network right so the idea is is it Doesn't matter if it's Dynex or you know Flux or Bitcoin or whatever it is that Is or US dollar that is being paid to For a service but then from the minings Perspective or the investor perspective Aren't we to a certain extent relying on

The work of the developers here here to Actually enable that and I don't really Know right I I don't know the answer to That I presume that this will get Researched by someone that fundamentally Knows the definitions of all this a lot Better than I do I'm just kind of you Know rambling at this point as to what I Kind of think off the top of my head When I look at this as a project let me Know what you guys think down in the Comment section below is this the Accepted form that we are going to move Forward with in proof of useful work do You think that there are ideas for Implementations that could further Decentralize this process and make it Truly decentralized without the need for Things like the malibend point without The need for the developers to work Directly with pool operators to actually Stand up a pool is there a way that Individuals could build their own nodes To mine to without all of this in play I Don't know why once again though there Are issues right now on Dynex if you Guys thought this was what the video was Going to be about I will mention them Real quickly the reason why the Dynex Hash rate and the pools have been going Down and up as long as well as the Malibend points is because Dynex is Transitioning into version 23 and as a Part of that there is a forced

Requirement for pools to include Basically a script that doesn't allow For more than 40 percent of the hash Rate on each on any individual mining Pool and that is why you are seeing Basically Echo pool get knocked down From that 60 percent to now I think at About 30 percent is going to make things Interesting from a minor perspective This means real quickly for you guys so You know what to do if you're mining Dynex you need to specify essentially Additional mining pools as well as Additional malib endpoints thanks Everybody for watching today be sure to Hit the like comment subscribe and Notification Bell down below smash that Like button check out son of a if you want to know what That means and definitely check out son Of a for my crypto mining E-course and I will see you next Tuesday

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