Nyzo uses a collaborative verification system that requires neither proof of work nor proof of stake. There is no mining. Simply participating in the mesh gives a node the opportunity to verify transactions, and the queueing system is designed so that transaction fees are distributed equitably to all participants. Very little computational power is required of a node, and having superior computational power will not allow a node to gain a larger share of transaction fees.
Nyzo was developed from the ground up to explore blockchain technology in an approachable, accessible manner. The source is simple and easy to read. The design of the blockchain and mesh are also simple and clearly explained in the white paper. Instead of layering complex fixes on top of a flawed design or adding elaborate features, we focused on the foundational technology of the blockchain to build a system that just works. Nyzo is also exceptionally flexible and extensible — the sender data field of Nyzo transactions allows for virtually unlimited possibilities for applications that utilize the Nyzo blockchain — but this flexibility is not obtained at the cost of reliability or stability.
The blockchain is an exciting and undeniably useful technology. However, it is far from mature. While Bitcoin was a brilliant innovation, its issues are numerous, and many of the issues cannot be remedied through iterative change. Instead, a total rethinking of the blockchain — a clean slate — is necessary. Unfortunately, of the open-source, democratic blockchains in use, Bitcoin and its forks (or forks of forks) dominate the landscape, and truly novel open-source blockchain implementations are rare.
