RE: Famous Economist Explains: Proof-of-Stake Tokens are Money, Bitcoin Isn't
The digging gold out of the ground is a good analogy of Proof of Work. I've been trying to come up with a clever version of the DPoS model, but it really isn't that easy.
The best I can come up with right now is to say that those who have continuous proved that they have performed good work, are more likely to succeed.
Take for an example, why someone would win a contract for a job. If prior results show that they have continuously provided good services by investing in their companies growth with machinery, they have staked their own money back into their own company, there by being more likely to succeed and increases the possibility of the next client trusting the company. This is what PoS does.
Downloaded the video onto my phone and will watch it on the way home! Good post!
Well one way to look at it is that it's just a representative democracy. Instead of requiring everyone digging up gold just so that no one has to manage the money supply we democratically elect people and PAY them (in Steem) to manage the money supply for us in a manner that we have predefined beforehand so as to guarantee that if they fail to do their job they will be immediately replaced and there would be no damage.
@andrarchy as you sure Blockchain is democratic? Absence of central trust
That’s really clear. Great analogy.