/biz/ - Business & Finance

>MUH WASTED ELECTRICITY!!! MUH ASIC LANDFILLS!!!

If you want the GDP of the planet to actually run on a blockchain, security is priority number 1. Proof of Stake has proven to be vulnerable to any number of attacks, mostly due to its complexity and therefore vastly larger attack-vector surface area. Proof of Work is made MORE SECURE the more “wasteful” it becomes, because the electrify and ASICS one must “Stake” in order to get miner rewards is a consumed, illiquid asset that must be repurchased again and again and can’t be resold, vs the Stake which is literally Money. If you want blockchain at world scale get used to gargantuan “waste”.

>MUH MINER CENTRALIZATION!!!

PoS is far more prone to centralization than PoW, for the same reason it is far less secure, the staker takes no risk when the asset he must stake to mine is the asset he desires to get from mining in the first place. That’s not even counting delegation. On first look you might think that because the barrier to entry is so low for mining (ie a decent computer running 24/7 with reliable connection), that PoS validation would be more decentralized than PoW, but delegation cocks this completely up. People only delegate to the validator(s) that give them the greatest rewards, and when you look at PoS chains that are running today, the distribution of validation is WAY more concentrated than is PoW mining, because the economy of scale curve flattens out on PoW into diminishing returns, whereas PoS doesn’t.

>MUH WASTED ELECTRICITY!!! MUH ASIC LANDFILLS!!!

If you want the GDP of the planet to actually run on a blockchain, security is priority number 1. Proof of Stake has proven to be vulnerable to any number of attacks, mostly due to its complexity and therefore vastly larger attack-vector surface area. Proof of Work is made MORE SECURE the more “wasteful” it becomes, because the electrify and ASICS one must “Stake” in order to get miner rewards is a consumed, illiquid asset that must be repurchased again and again and can’t be resold, vs the Stake which is literally Money. If you want blockchain at world scale get used to gargantuan “waste”.

>MUH MINER CENTRALIZATION!!!

PoS is far more prone to centralization than PoW, for the same reason it is far less secure, the staker takes no risk when the asset he must stake to mine is the asset he desires to get from mining in the first place. That’s not even counting delegation. On first look you might think that because the barrier to entry is so low for mining (ie a decent computer running 24/7 with reliable connection), that PoS validation would be more decentralized than PoW, but delegation cocks this completely up. People only delegate to the validator(s) that give them the greatest rewards, and when you look at PoS chains that are running today, the distribution of validation is WAY more concentrated than is PoW mining, because the economy of scale curve flattens out on PoW into diminishing returns, whereas PoS doesn’t.

>MUH WASTED ELECTRICITY!!! MUH ASIC LANDFILLS!!!

If you want the GDP of the planet to actually run on a blockchain, security is priority number 1. Proof of Stake has proven to be vulnerable to any number of attacks, mostly due to its complexity and therefore vastly larger attack-vector surface area. Proof of Work is made more “wasteful” it becomes, because the electrify and ASICS one must “Stake” in order to get miner rewards is a consumed, illiquid asset that must be repurchased again and again and can’t be resold, vs the Stake which is literally Money. If you want blockchain at world scale get used to gargantuan “waste”.

>MUH MINER CENTRALIZATION!!!

PoS is far more prone to centralization than PoW, for the same reason it is far less secure, the staker takes no risk when the asset he must stake to mine is the asset he desires to get from mining in the first place. That’s not even counting delegation. On first look you might think that because the barrier to entry is so low for mining (ie a decent computer running 24/7 with reliable connection), that PoS validation would be more decentralized than PoW, but delegation cocks this completely up. People only delegate to the validator(s) that give them the greatest rewards, and when you look at PoS chains that are running today, the distribution of validation is WAY more concentrated than is PoW mining, because the economy of scale curve flattens out on PoW into diminishing returns, whereas PoS doesn’t.