TD₿: Why doesn’t Bitcoin move from proof-of-work to proof-of-stake? (a thread) by Namcios
TL;DR PoW allows for energy to replace human governance and creates a completely new type of monetary system.
Hey Bitcoiners,
When you parse through the digital asset resources on the websites of organizations like the International Monetary Fund, the World Economic Forum, and the Bank of International Settlements, you inevitably come across pieces highlighting Proof of Stake.
Many of these organizations deride Proof of Work as wasteful, energy-intensive, and unscalable, while at the same time writing positively about Proof of Stake as a viable alternative to all of these perceived flaws.
What these organizations fail to include in their literature is all the benefits Proof of Work provides. Mainly, it allows for an immutable, decentralized ledger that cannot be easily changed or manipulated by anyone.
PoW removes the need for human governance and instead uses energy and the laws of Thermodynamics for network participants to come to consensus.
On the other hand, Proof of Stake merely is the same old voting governance structure we already have in the traditional financial system that can be easily controlled by a small group of people.
Namcios wrote this Twitter thread that summarizes comments from Bitcoiners on this subject at the recent Oslo Freedom Forum (05/25/2022).
The real reason these organizations chastise PoW while promoting PoS is that with PoS they would be able to maintain their power and control over the system. With PoW, no one has the ability to unilaterally control the system.
When you look at the world today, the fact is that the system these organizations desperately want to maintain control over is simply not working for the majority of people.
PoW and Bitcoin represent something different in a time when we desperately need positive change.
Tick tock next block,
Cory Klippsten
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Quote of the Day
“Proof of stake is akin to someone minting fake gold (all at once) and keeping half for themselves & putting the other half into circulation. Proof of work requires you to dig 1 million times before one unit is found. One is fair distribution while one requires privileged access.” - Preston Pysh, Host of the Investor’s Podcast.
Meme of the Day
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