Proof of Stake (PoS)

in #crypto7 years ago

I've been thinking about Proof of Stake (PoS) coins versus Proof of Work (PoW) coins lately, and though some personal experience, I have found that PoS coins are becoming less to my liking. They follow a more traditional approach of mining rewards where those that hold more are more rewarded, rather than selecting those that provide PoW randomly from the participants.

This type of social structure to PoS coins makes me like them less than the more mathematically inclined PoW rewards system. A PoS coin supposedly uses less energy to run, as those miners that have more 'stake' (coins) have a vested interest in keeping the network 'honest'. This type of 'trust' is what PoW systems do not require and were designed to allow completely trustless transactions of value between parties, and the network is there working (and being rewarded) by ensuring these transitions occur in a trustless and decentralized manner.

Ethereum has recently being thinking of going to PoS, and I have to think about whether that would be a worthy move or not, since I see Ethereum (the coin) as not being a currency, but the 'gas' to run the Ethereum Virtual Machine on a computer that will NEVER be shut down. Ethereum serves a real purpose in the world of computing and value exchange, once we figure out how to use what we have created.

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