Is Proof of Stake an Unfair System?
Let's talk about proof of stake today. As many of you will know, Ethereum will one day transition to an entirely proof of stake based system.
Critics (especially Bitcoin Maximalists) criticise proof of stake as an unfair system that "makes the rich richer for little to no work".
Is this a fair representation? Is it any less fair than proof of work? That's what I'll be discussing in today's video.
(And apologies for the poor audio!!)
Crypto Merch Link: https://www.moonmerch.co/
DISCLAIMER: This is NOT financial advice. I am just offering my opinions. I am not responsible for any investment decisions that you choose to make.
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I’m looking forward to ETH POS as it will make participation easier for non technical people and those wanting to stake. Crazy to consider that with recent prices and the new 32 ETH threshold, you can earn with less than $4,000!
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POS/DPOS/Hybrids allow so much more. More multi-dimensional in a sense. In blockchain there’s so many different participants. POS brings us closer to a more egalitarian system.
Full Nodes are incentivized
Voting systems
Governance
High Performance
Lower Barriers to Entry
Within some POS consensus systems finality can be achieved within a few seconds. Bitcoin takes 1 hr for finality.
Ethereum POS I believe will be within a few min. for finality.
This can enable everyone to be involved & most importantly keep the control within the stakeholders grasp.
We see what can happen in Bitcoin with hash wars. psychopaths can take over or split networks. Dev teams can hold network hostage.
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very good point @louisthomas . I agree with you. you need money to make money. with the POS atleast the small investors can make a tiny profit just by holding their ETH
I think it is more equitable than pow. Not to mention the whole BCH hash war served as a perfect example of the dangers of pow when central players want to start asserting their dominance.
POW is the exact same unfairness driven by scarcity. The only difference is people buy the same $-value of mining hardware, instead of buying the actual coins of the chain they want to support. You could argue that POW is even more unfair because companies get to decide which pieces of hardware get sold and produced, and they always profit no matter what instead of the people actually contributing to the network.