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Proof-of-Stake is a rich-get-richer algorithm. If you hold 1% of the coins, you will mine 1% of the blocks and keep those block rewards. Ethereum has been a p
by ActsJuvenile 9y ago
Proof-of-Stake is a rich-get-richer algorithm. If you hold 1% of the coins, you will mine 1% of the blocks and keep those block rewards.
Ethereum has been a promising platform for innovation. It is doomed to become a shill infested cesspool the day POS replaces POW.
- thescriptkiddie 9y agoHow is this any different than the current situation, where your ability to get block rewards is directly proportional to your ability to spend money on mining hardware?
- DINKDINK 9y agobecause anyone can start running hashing computations to generate blocks with PoW (See DMMS) Proof of Stake requires that you buy the currency in order to create blocks.
- warbiscuit 9y agoIf they have the money to buy hashing hardware that's competitive, staking that money has a lower barrier to entry... You don't need space, hardware, or technical experience to assemble the rig. Just $.
- lmm 9y agoRich people in a proof-of-stake system will stake their money because doing so gets them more free money for no cost. Rich people in a proof-of-work system have to choose between spending their money on hashing hardware and spending it on other things.
- thescriptkiddie 9y agoThe thing about rich people is that they don't spend most of their money. Instead, they keep it locked up in relatively illiquid investments that yield big returns over long terms. The poor are stuck with riskier short term investments, if they can afford to invest at all.