PoW coins should be dead already! Here is why they might be a deadly trap: crypto51.app

in cryptocurrency •  4 months ago

Proof of Work for years did not sound good to me at all... energy waste, in order to slow down block creation was always something I did not like at all. Hashpools, ASICs and so on lead to an absolute concentration of power, so that 2 Hashpools together really always are able to Hijack the blockchain by creating quicker blocks than the rest. Bitcoin Core says that it is the real bitcoin as it has more hashpower than Bitcoin Cash, giving it a project like Lightning Network, which was foreseen by Dan Larimer in 2011 (and not liked).

When Proof of Stake came out with its first adopters like BlackCoin, I thought, that this was pure genious, a really great solution... You want to 51% attack a PoS-coin, just try to buy 51% of that coin. Surely the price would go through the roof, so I guess also other hodlers would be fine with such an attack and sell the attacker their coins for a high price. Than the attacker could destroy their own wealth... absolutely cool... So I knew PoS was the way to go.

The problem with PoS was that many people were not staking, as they had very few coins, so in the end some exchanges would end up with more than 50% of staking power as many did not participate with their stakes.

Then Dan Larimer came out with his iteration Delegated Proof of Stake, which really is what it should be. 21 voted delegates producing professionally the blocks. 51% attack, absolutely unlikely... and if it happened than it would be wanted by the stakeholders.

Why Bitcoin / Litecoin / Monero and all those other Proof of Work Coins should be dead by now

With the publication of the crypto51.app website every idiot can see how cheaply this Proof Of Work system can be attacked. Anytime.

It is not just like those PoW coins are not unstoppable, they are ridiculously easy to hijack. I will from now on only use Bitcoin, as it is the securest PoW-coin of them all... with a 500,000 USD/hour price to hijack per hour. Einsteinium you can hijack for 19 USD/hour or Monero for under 20,000 USD/hour.

If you receive a payment in Bitcoin, you can never be a 100% sure to really have received it as someone else can publish a longer chain were your transaction is not in it. It just gets closer and closer to a 100% without never touching it.

Let us say that you were sent a 10 Million USD payment with bitcoin. In order to be lower than the amount it costs to hijack the chain, you would have to wait for at least 11 hours (11*500,000), so that the amount which could be robbed is lower than the cost to hijack. For a 100 million USD payment, you would have to wait 10 times longer, or in other words 5 days. But you 10 million USD might only be part of the heist. With one hijacking you can make another 2500 transactions disappear in 10 minutes. So better wait a year... and even then you cannot be sure...

With Einsteinium you should wait 2500 times longer than that, as it is 2500 times cheaper to attack.

A bank like HSBC earning 20.000.000.000 USD per year, could hijack Bitcoin several times a day for the whole year... is this the kind of security Bitcoin offers?? Needless to say, that after a month of continuous hijacking Bitcoin would already be worthless and the hashpower of real miners be gone entirely, as they would not be able to sell what they mine, they would not be able to pay the bills and have to shutdown their operations.

All of those coins would have to switch to PoS in order to be able to exist... but how much would the community have suffered, as all of those noobs who entered lately in this world would be totally disoriented and broke. This would throw crypto years back in development.

It is really luck that the Banksters are stupid idiots and have not eliminated their competitors already. But who knows? I mean this can happen anyday now...

DPoS is the only good alternative

Why, ohhh, why is the market not valuing all of PoS coins above PoW-coins? Because the noobs who enter do not even know the difference. And they will get slaughtered, if someone wants to slaughter them.

DPoS is quick and trying to hijack a witness is almost impossible... to get the key of 1 of the 21 witnesses all of the computer power of the world would have to try and get the key for years. And if they got it then the witness in Steem would just change their keys or the stakeholders would vote for another witness, making the key of that witness useless.

Flight to DPoS?

I think we will have to wait for a disaster in the PoW world. before many investors do not loose everything in a Bitcoin/PoW meltdown, they will not be interested in looking for other solutions regarding this problem. But if those investors are broke then there will not be much economic energy for some time to come in this sector.

It is paramount that (D)PoS coins hold each and every place in the Top 10 cryptos. Let us educate the crowd about the dangers of all the listed coins in crypto51.app, so that those PoW coins loose their importance of this space. These could be a MtGoX^10 if they were successfully attacked right now by the banking system. But if they are dead, without users we would not have to worry about them anymore.

What is your opinion?

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

well from the day it get into the institutional hands this is going down and in the future it might be dead