Introduction to Ore: A Revolutionary Proof-of-Work Token on Solana

In the ever-evolving world of cryptocurrency, innovation is the key to progress. One such groundbreaking project that has recently caught the attention of the crypto community is Ore, a proof-of-work token built on the Solana blockchain. In this episode of the Lightspeed podcast, host Jack sits down with Hardhat Chad, the anonymous developer behind Ore, to discuss the project's origin, its impact on Solana, and its potential to revolutionize token distribution in the crypto space.

Ore represents a unique blend of traditional proof-of-work mechanics with the high-performance capabilities of the Solana blockchain. This combination has resulted in a project that not only pushes the boundaries of what's possible on Solana but also aims to address longstanding issues in the cryptocurrency industry, such as fair token distribution and accessibility to mining.

The Genesis of Ore: From Concept to Reality

The idea for Ore was born out of a conversation about Bitcoin bridges and Layer 2 solutions for bringing Bitcoin to Solana. Hardhat Chad and his friends were exploring ways to maximize Bitcoin's presence on the Solana blockchain. However, as they delved deeper into the technical challenges, they became frustrated with the existing solutions.

"Eventually, we just kind of got to the point where we were joking like, well, we could rewrite Bitcoin as a smart contract and deploy that on Solana and that would get us quote unquote Bitcoin on Solana," Hardhat Chad recalls. This offhand joke planted the seed for what would eventually become Ore.

Over the next six to seven months, the concept lingered in Hardhat Chad's mind. In January, he began to seriously explore the possibility of implementing proof-of-work on Solana. As he delved into the technical aspects, he realized that Solana's proof-of-stake consensus mechanism opened up new possibilities for a proof-of-work token.

The Dual Role of Proof-of-Work in Bitcoin

To understand the innovation behind Ore, it's crucial to recognize the dual role that proof-of-work plays in Bitcoin. Hardhat Chad explains, "Proof of work on Bitcoin has two major responsibilities. One is it provides consensus for the network. And the second is it's responsible for distributing new Bitcoin tokens to miners."

This realization was a turning point for the Ore project. By building on Solana, Ore could leverage the existing consensus mechanism of the blockchain, freeing the project to focus solely on token distribution. This insight led to the core mission of Ore: to provide a novel solution to the fair launch problem that has plagued the crypto industry since its inception.

The Fair Launch Problem in Cryptocurrency

The fair launch problem refers to the challenge of distributing tokens in a way that is equitable and accessible to as many people as possible. Traditional token distribution methods, such as Initial Coin Offerings (ICOs) or airdrops, often face criticism for favoring insiders or early adopters, leading to centralization of token ownership.

Hardhat Chad sees Ore as a potential solution to this problem. By implementing a proof-of-work mechanism for token distribution on Solana, Ore aims to create a more level playing field where anyone with a computer can participate in mining and earn tokens.

The Impact of Ore on Solana's Network

The launch of Ore had an unexpected impact on the Solana network. Shortly after its introduction, Solana began experiencing significant congestion issues, with many transactions failing to reach the blockchain. This led to frustration among users and raised questions about Solana's ability to handle high-load applications.

Hardhat Chad explains, "There was so much demand for the token, so many transactions being submitted to the chain that it aggravated and exposed this bug in the Solana networking layer." This created a feedback loop where the network slowdown sparked interest in Ore, leading to more mining activity, which in turn exacerbated the congestion.

The Pause and Rebirth: From Ore V1 to V2

Recognizing the strain on the Solana network and the challenges it posed to fair token distribution, Hardhat Chad made the difficult decision to pause mining and began developing Ore V2. This new version was designed to be more efficient and better suited to Solana's infrastructure.

During this pause, Solana developers also implemented changes to improve the network's ability to handle periods of high usage. These combined efforts led to the resumption of Ore mining on August 5th, with improved success rates and a more stable experience for miners.

Key Improvements in Ore V2

Ore V2 introduced several significant improvements over its predecessor. One of the most notable changes was the implementation of a supply cap. Hardhat Chad explains, "We added a supply cap of 21 million tokens, just kind of borrowing the total max supply of Bitcoin." This change was in response to community feedback and provides stronger guarantees against inflation and dilution.

Another major innovation in V2 is the introduction of a new hash function called DrillX. This function is designed to be more CPU-friendly and less susceptible to the advantages of specialized mining hardware like ASICs (Application-Specific Integrated Circuits).

DrillX: Leveling the Mining Playing Field

The DrillX hash function is a key component in Ore's mission to make mining more accessible. Unlike Bitcoin's SHA-256 algorithm, which can be highly optimized for parallel processing in ASICs, DrillX is designed to be less parallelizable. This means that the performance gap between a standard computer and specialized mining hardware is significantly reduced.

Hardhat Chad elaborates, "With DrillX, the hash function is far more CPU friendly. It's far harder to parallelize in that sense. And so that lends itself more to like commodity computers, whether it be phones or laptops or like EC2 instances in AWS."

This design choice is crucial for Ore's goal of fair token distribution. By making mining more accessible to everyday users with standard computing devices, Ore aims to create a more decentralized and equitable distribution of tokens.

The Guaranteed Reward System of Ore

One of the most innovative aspects of Ore is its guaranteed reward system. Unlike Bitcoin, where small-scale miners might go long periods without earning any rewards due to competition from large mining operations, Ore guarantees that every miner will receive some reward for their efforts.

Hardhat Chad explains, "The key with the contract is we still are able to guarantee that even those smaller devices like the phones are able to land a hash, they can still submit something and get the token, which is kind of key." This feature is fundamental to Ore's mission of creating a more inclusive mining ecosystem.

The Mining Process and Difficulty in Ore

The mining process in Ore operates on a minute-by-minute basis. Miners run their hardware for about 50-55 seconds, searching for the most difficult hash they can find. The difficulty of a hash is determined by the number of leading zeros it contains when viewed as a number.

Every 60 seconds, miners submit their best hash to the Ore contract. The more difficult the hash (i.e., the more leading zeros it has), the greater the reward. This system creates a dynamic where miners with more powerful hardware have a higher chance of finding more difficult hashes, but even less powerful devices are guaranteed to earn some reward.

The Challenge of Browser-Based Mining

While Ore aims to make mining accessible to a wide range of devices, including phones and laptops, there are challenges in implementing browser-based mining solutions. Web browsers often throttle the performance of mining scripts, limiting their effectiveness.

To address this issue, Hardhat Chad is exploring the development of mining pools. These pools would allow smaller miners to combine their resources, potentially overcoming the limitations of browser-based mining and competing more effectively with larger mining operations.

The Economics of Ore Mining

The economics of Ore mining involve a delicate balance between the rewards earned and the transaction fees paid to submit hashes to the Solana blockchain. For smaller miners, the transaction fees can sometimes exceed the value of the Ore tokens earned, creating a potential barrier to participation.

Hardhat Chad acknowledges this challenge: "If you have less hash power, if you have a smaller device, you're going to be finding lower difficulty hashes and therefore earning less Ore and the fees, the transaction fees that you're paying to submit to those hashes and earn that Ore, on a SOL denominated basis can be higher than the Ore you're actually earning."

This economic reality is one of the driving forces behind the development of mining pools for Ore, which could help smaller miners reduce their individual transaction costs.

Ore as a Store of Value

As the cryptocurrency market evolves, many projects position themselves as potential stores of value, similar to Bitcoin's "digital gold" narrative. When asked about Ore's potential in this regard, Hardhat Chad offers a nuanced perspective.

He points out that the "digital gold" narrative for Bitcoin largely emerged as a response to scaling issues and high transaction fees. However, he sees value in the concept of a fixed supply token with strong dilution guarantees.

Hardhat Chad explains, "I do actually like, you know, support that quite strongly. And definitely my intent with the Ore is to give the Ore token, those guarantees as well is that's like, if you're holding Ore there is a cap to the number of tokens that are going to be minted."

The Immutability of Ore's Contract

One of the key features that Hardhat Chad believes gives Ore potential as a store of value is the immutability of its contract once it's frozen. This immutability provides strong guarantees about the token's supply and distribution that can't be altered by political debates or community pressures.

"Once it's there, it's immutable. And there's no amount of like hacking or politicking I could do to ever change that, which I think is important," Hardhat Chad emphasizes. This characteristic could potentially make Ore even "harder" than Bitcoin in some respects, as Bitcoin's codebase still undergoes periodic updates and changes.

The Development of Ore: A Community Effort

While Hardhat Chad is the founder and primary developer of Ore, the project has benefited significantly from community contributions. He notes that in the week following the launch of Ore V2, the community submitted numerous pull requests to improve the client software.

These contributions ranged from implementing retry logic to adding dynamic priority fee calculations for different RPCs (Remote Procedure Calls). This level of community engagement and contribution speaks to the enthusiasm surrounding the Ore project and its potential impact on the Solana ecosystem.

The Future of Ore: Games and Fair Launch Solutions

Looking to the future, Hardhat Chad and his team at Regolith Labs are working on several projects to expand the Ore ecosystem and further its mission of fair token distribution. One of these projects is a game called "Check Wars," inspired by a viral web experiment called "1 Million Checkboxes."

Check Wars is envisioned as a territory control game that leverages the strengths of blockchain technology, particularly Solana's high-speed transactions. While the game's rules are simple, Hardhat Chad anticipates that complex strategies will emerge, potentially leading to the development of sophisticated bots and machine learning algorithms by players.

The Potential of Proof-of-Work for Fair Token Distribution

Beyond Ore itself, Hardhat Chad sees potential for applying proof-of-work principles to solve fair launch problems for other crypto projects. He believes that if Ore can successfully demonstrate a fair and accessible distribution model, these tools could be shared with the broader crypto community.

"If we can make it accessible, we can get tokens into the hands of tens or hundreds of millions of people. And that benefits everyone across the chain and across the ecosystem. We just get more people involved in it," Hardhat Chad explains.

The Challenges of Founder's Journey

Reflecting on his journey as the founder of Ore, Hardhat Chad shares some insights into the unexpected aspects of leading a rapidly growing crypto project. He expresses gratitude for the overwhelming community support and engagement, which has been crucial in shaping the direction of Ore.

However, he also acknowledges the challenges of managing communication at scale, dealing with a constant influx of messages, emails, and social media interactions. This aspect of project management is an ongoing learning process for Hardhat Chad and his team.

The Impact of Ore on the Solana Ecosystem

While Ore's initial launch caused some congestion issues for Solana, it also demonstrated the blockchain's ability to handle high-demand applications. The challenges posed by Ore led to improvements in Solana's infrastructure, potentially benefiting the entire ecosystem.

Moreover, Ore has attracted a new cohort of users to the Solana ecosystem. Many of these users were previously crypto-adjacent but not actively involved. The accessibility of Ore mining has served as an onboarding mechanism, introducing these users to the broader world of Solana and decentralized finance.

The Potential of Ore for Airdrops and Token Distribution

The proof-of-work mechanism employed by Ore could potentially revolutionize the way airdrops and token distributions are conducted in the crypto space. Traditional airdrops often face criticism for favoring insiders or being susceptible to Sybil attacks (where users create multiple accounts to receive more tokens).

Hardhat Chad sees potential in applying Ore's proof-of-work principles to create fairer, more accessible airdrops. By requiring users to perform some computational work to receive tokens, projects could potentially create a more equitable distribution while also ensuring that recipients have some "skin in the game."

The Economics of Ore: Supply, Demand, and Value

As with any new token, questions arise about Ore's economic model and what gives it value. Hardhat Chad points out that while Ore doesn't directly contribute to Solana's consensus mechanism, it does drive demand for Solana block space, benefiting validators and the broader ecosystem.

The fixed supply of 21 million Ore tokens, combined with the ongoing demand created by mining activities, forms the basis of Ore's economic model. However, Hardhat Chad emphasizes that the long-term, linear release of Ore tokens creates a very different dynamic compared to tokens with shorter vesting periods or large allocations to early investors.

The Role of Staking in Ore V2

Ore V2 introduced a staking mechanism that allows miners to stake their earned Ore tokens for additional rewards. This feature creates an incentive for miners to hold onto their tokens rather than immediately selling them, potentially reducing selling pressure and creating a more stable token economy.

Hardhat Chad explains, "We added a staking mechanic to the V2 contract that allows miners to stake the Ore that they've mined and for that stake, they get a multiplier on their miner rewards." This compounding effect changes the calculus for miners, especially larger operations, in how they approach their Ore holdings.

The Technical Challenges of Developing Ore

Developing a proof-of-work token on a proof-of-stake blockchain like Solana presented unique technical challenges. One of the ongoing issues is managing transaction fees, which can be a significant cost for miners, especially those with less powerful hardware.

To address this, Hardhat Chad and his team have implemented dynamic priority fee calculations in the Ore client software. This feature automatically adjusts the priority fee based on current network conditions, helping to optimize the cost-effectiveness of mining for all participants.

The Community's Role in Shaping Ore's Development

Throughout the development of Ore, community feedback and contributions have played a crucial role. From suggesting the implementation of a supply cap to contributing code improvements, the Ore community has been actively involved in shaping the project's direction.

Hardhat Chad expresses appreciation for this engagement: "I've been super grateful for the fact that like all the people are in the Discord who are active, like contributing their ideas, offering feedback. The moment I land something on GitHub, I get a DM or a tweet or a ping in Discord of someone with feedback."

The Future of Proof-of-Work on Proof-of-Stake Blockchains

Ore's success in implementing a proof-of-work token on Solana raises interesting questions about the future of blockchain technology. It demonstrates that the principles of proof-of-work can be applied in novel ways, even on blockchains that don't use proof-of-work for consensus.

This hybrid approach could potentially offer the best of both worlds: the fair distribution and mining accessibility of proof-of-work combined with the speed and efficiency of proof-of-stake networks like Solana.

Ore's Potential Impact on Cryptocurrency Adoption

By making mining accessible to a wider range of devices and users, Ore has the potential to introduce more people to the world of cryptocurrency. The ability to mine tokens using everyday devices like phones or laptops could serve as an entry point for individuals who might otherwise find cryptocurrency intimidating or inaccessible.

Hardhat Chad sees this as a key benefit of the Ore project: "I think we reached this world where it's like, we can onboard a lot more people to crypto because people intuitively understand mining. They just need to like, it needs to be accessible to them."

The Ongoing Development of Ore

As Ore continues to evolve, Hardhat Chad and his team are focused on several key areas of development. These include improving the efficiency of the mining process, developing mining pools to benefit smaller miners, and creating new applications and games within the Ore ecosystem.

The upcoming "Check Wars" game is just one example of how the team is looking to expand Ore's utility and appeal. By creating engaging applications that leverage Ore's unique properties, they hope to drive adoption and create a vibrant ecosystem aroun

d the token.

Conclusion: Ore's Place in the Future of Cryptocurrency

Ore represents a fascinating experiment in combining traditional proof-of-work principles with modern, high-performance blockchain technology. Its innovative approach to fair token distribution and accessible mining could have far-reaching implications for the cryptocurrency industry.

As the project continues to develop and evolve, it will be interesting to see how Ore impacts the Solana ecosystem and the broader cryptocurrency landscape. Whether it becomes a new paradigm for token distribution or serves as a blueprint for future innovations, Ore is undoubtedly a project worth watching in the coming years.

Facts + Figures

• Ore was originally founded in April as part of a hackathon on Solana.
• Ore V2 resumed mining on August 5th, about a week before the podcast recording.
• Approximately 9% of Solana block space is currently occupied by Ore transactions.
• There are around 5,300 holders of Ore V2 tokens.
• Ore has a total fixed supply of 21 million tokens, mirroring Bitcoin's supply cap.
• The Ore contract mints one token per minute.
• Ore uses a new hash function called DrillX, which is more CPU-friendly than Bitcoin's SHA-256.
• Ore guarantees that every miner will receive some reward for their efforts, unlike Bitcoin.
• Mining in Ore operates on a minute-by-minute basis, with miners submitting their best hash every 60 seconds.
• Ore V2 introduced a staking mechanism that provides a multiplier on miner rewards.
• The Ore community has submitted at least a dozen pull requests to improve the client software in the week following V2's launch.
• Hardhat Chad and one other person work full-time on maintaining the Ore software.
• The idea for Ore originated from a conversation about Bitcoin bridges and Layer 2 solutions for Solana.
• The development of Ore V1 took approximately three months before its launch.
• Ore's initial launch exposed a bug in Solana's networking layer, leading to network congestion.
• The upcoming "Check Wars" game is inspired by a viral web experiment called "1 Million Checkboxes."
• Ore aims to solve the fair launch problem that has been a challenge in the crypto industry since its inception.
• The DrillX hash function is designed to be less parallelizable, reducing the advantage of specialized mining hardware like ASICs.
• Ore's mining process involves finding hashes with leading zeros, with more zeros indicating a more difficult (and more rewarded) hash.
• Hardhat Chad envisions Ore's proof-of-work principles potentially being applied to create fairer, more accessible airdrops in the future.

Questions Answered

What is Ore?

Ore is a proof-of-work token built on the Solana blockchain. It aims to combine the fair distribution principles of traditional proof-of-work systems with the high performance of Solana's proof-of-stake network. Ore's main goal is to solve the fair launch problem in cryptocurrency by making mining accessible to a wide range of users, even those with standard computing devices like phones or laptops.

How does Ore mining work?

Ore mining operates on a minute-by-minute basis. Miners run their hardware for about 50-55 seconds, searching for the most difficult hash they can find. Every 60 seconds, miners submit their best hash to the Ore contract. The difficulty of a hash is determined by the number of leading zeros it contains when viewed as a number. The more difficult the hash, the greater the reward. Unlike Bitcoin, Ore guarantees that every miner will receive some reward for their efforts, regardless of their hardware's power.

What is the DrillX hash function?

DrillX is a new hash function developed specifically for Ore. It is designed to be more CPU-friendly and less susceptible to the advantages of specialized mining hardware like ASICs (Application-Specific Integrated Circuits). Unlike Bitcoin's SHA-256 algorithm, which can be highly optimized for parallel processing, DrillX is less parallelizable. This design choice aims to level the playing field between miners using standard computers and those with specialized hardware, making mining more accessible to a wider range of participants.

How does Ore differ from Bitcoin?

While both Ore and Bitcoin use proof-of-work, there are several key differences. Ore is built on Solana, a proof-of-stake blockchain, which means it doesn't use proof-of-work for consensus. Instead, Ore uses proof-of-work solely for token distribution. Ore also guarantees rewards for all miners, uses a different hash function (DrillX instead of SHA-256), and operates on a minute-by-minute basis rather than Bitcoin's approximately 10-minute block times. Additionally, Ore has implemented features like staking and is developing associated games and applications.

What improvements were made in Ore V2?

Ore V2 introduced several significant improvements over its predecessor. These include the implementation of a supply cap of 21 million tokens, mirroring Bitcoin's max supply. V2 also introduced the DrillX hash function, which makes mining more accessible to standard computing devices. A staking mechanism was added, allowing miners to stake their Ore for additional rewards. The new version also includes improvements to handle transaction fees more efficiently, such as dynamic priority fee calculations.

How does Ore impact the Solana ecosystem?

Ore has had a significant impact on the Solana ecosystem. Its initial launch exposed some scalability issues in Solana's infrastructure, leading to improvements in the network's ability to handle high-load applications. Ore transactions currently occupy about 9% of Solana's block space, driving demand for block space and potentially increasing revenue for validators. Additionally, Ore has attracted new users to the Solana ecosystem, serving as an onboarding mechanism for people who were previously crypto-adjacent but not actively involved.

What is the "Check Wars" game mentioned in the podcast?

"Check Wars" is an upcoming game being developed by the Ore team. Inspired by a viral web experiment called "1 Million Checkboxes," it's envisioned as a territory control game that leverages blockchain technology, particularly Solana's high-speed transactions. While the game's rules are intended to be simple, the developers anticipate that complex strategies will emerge, potentially leading to the development of sophisticated bots and machine learning algorithms by players. The game aims to create additional utility and engagement within the Ore ecosystem.

How does Ore aim to solve the fair launch problem in cryptocurrency?

Ore addresses the fair launch problem by making mining accessible to a wide range of users, even those with standard computing devices like phones or laptops. By using the DrillX hash function, which reduces the advantage of specialized mining hardware, Ore aims to create a more level playing field for token distribution. Additionally, Ore guarantees that every miner will receive some reward for their efforts, ensuring that even small-scale participants can earn tokens. This approach contrasts with traditional token distribution methods like ICOs or airdrops, which often favor insiders or early adopters.

What are the future plans for Ore?

The future plans for Ore include several key areas of development. The team is working on improving the efficiency of the mining process and developing mining pools to benefit smaller miners. They're also creating new applications and games within the Ore ecosystem, with "Check Wars" being one example. There are plans to explore how Ore's proof-of-work principles could be applied to create fairer, more accessible airdrops. The team is also considering how their fair launch solution could be shared with other projects in the crypto space, potentially influencing token distribution methods across the industry.

How does staking work in Ore V2?

Ore V2 introduced a staking mechanism that allows miners to stake their earned Ore tokens for additional rewards. When miners stake their Ore, they receive a multiplier on their mining rewards. This feature creates an incentive for miners to hold onto their tokens rather than immediately selling them, potentially reducing selling pressure and creating a more stable token economy. The staking mechanism adds a layer of strategy to Ore mining, as miners must balance the immediate gains from selling their mined Ore against the potential for increased future rewards through staking.