TD₿: Proof-of-work vs. Proof-of-stake (a video) by yungfi
TL;DR Proof of Stake fails to offer the same assurances as PoW and is more prone to centralization.
Hey Bitcoiners,
Over the last couple of years, we’ve seen multiple different institutions like the ECB and IMF share their views on Bitcoin and specifically Proof of Work.
Bitcoin mining continues to find itself in the crosshairs of any institution that is threatened by Bitcoin’s continued adoption.
Their thin arguments have become so predictable that Nic Carter made a fun Bingo sheet with all their common critiques.👇
I want to focus on one box from above which is, “Just switch to PoS”.
This statement makes the false equivalence that Proof of Stake can somehow offer the same assurances as Proof of Work, which it cannot.
Proof of Stake tries to artificially recreate the honesty provided by Bitcoin’s energy use through man-made voting schemes where one must trust other participants within the system.
Proof of Stake incentivizes wealthy token holders to take over the system by forming a cartel. It fuels an environment where the rich get richer.
I recently came across this well-made YouTube video created by yungfi that does a great job explaining the differences between PoW and PoS (04/19/2022).
When critics say that Bitcoin can just switch to PoS, they are only showing their own ignorance of the vast differences between the two consensus mechanisms.
Tick tock next block,
Cory Klippsten
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Quote of the Day
“Imagine going backwards to a trust-based system when there’s a clear solution that’s already trust-less. Proof of Work abides by natural law. Proof of Stake is man-made, built from top-to-bottom, Cantillon-inducing, synthetic robbery.” - SonOfTheSun, Bitcoiner
Meme of the Day