1.Decentralization Problem (Byzantine General Problem):
How to create a trustless system where no single entity controls the entire network?
Solution:
Distribute a copy of the ledger to every computer on the network.
2.Malicious Actor Problem:
How to prevent malicious participants from exploiting the system?
Solution:
Implement a Proof of Work (PoW) mechanism, requiring participants to perform computationally intensive tasks to validate transactions.
3.Incentive Problem:
How to motivate honest participants to sustain their involvement in the network?
Solution:
Introduce a Bitcoin reward system, where participants (miners) are rewarded with newly minted bitcoins for contributing to network stability.
4.Autonomous Operation Problem:
How to ensure the system can operate autonomously without human intervention?
Solution:
Implement a Turing virtual machine, which orchestrates and executes transactions without the need for human control.
5.Halting Problem:
How to predict if a program running on the network will terminate or run indefinitely?
Solution:
Utilize a Turing incomplete machine, which sacrifices some computational capabilities in exchange for predictability and stability.
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