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The issue with PoS is that it just makes the rich richer, the more coin you already have, the more reward you'll get. That's why I like NEM's PoI (proof of imp

The issue with PoS is that it just makes the rich richer, the more coin you already have, the more reward you'll get. That's why I like NEM's PoI (proof of importance) and Nebulas PoD (proof of devotion) algorithms as a more fair staking method

api 9y ago
PoW does that too since mining hardware costs money and is a constant arms race.
mbrock 9y ago
In a capitalist system, wealthy nodes will always use their wealth to earn interest.
GordonS 9y ago
I've never heard of those algorithms you mention, are you able to give a brief description of them and how they are superior to PoS?
- companyhen 9y ago
  PoI - https://themerkle.com/what-is-proof-of-importance/ https://themerkle.com/what-is-proof-of-importance/ PoD - https://medium.com/research-center/nebulas-nas-ico-analysis-a-decentralized-search-engine-for-the-blockchain-441dc027a7c5 https://medium.com/research-center/nebulas-nas-ico-analysis-... I'm not too familiar yet as I just started reading about it recently, but these two links should help you understand. They're short reads.
  - GordonS 9y ago
    Hmm, PoI seems almost identical to PoS, but with a 'weighting' calculation to determine 'importance' instead of using the raw value. PoD also seems also identical to PoS, but with a kind of 'gamification' element, whereby the amount staked can give you extra network privileges. TBH, at least after a quick look, both PoI and PoD seem like they are PoS systems, just with some extra bells and whistles that could be added to any PoS system.
CryptoPunk 9y ago
>>The issue with PoS is that it just makes the rich richer, the more coin you already have, the more reward you'll get. You're neglecting the fact that everyone can stake their ETH, whether they hold a bit or a lot. The rate of return on all staked ETH is equal, so the rich don't see their total ETH grow faster than the poor. While it does grow in absolute terms, their holding stays the same size relative to the total ETH supply, which will grow at the same rate as their own holding.

api 9y ago

PoW does that too since mining hardware costs money and is a constant arms race.

mbrock 9y ago

In a capitalist system, wealthy nodes will always use their wealth to earn interest.

GordonS 9y ago

I've never heard of those algorithms you mention, are you able to give a brief description of them and how they are superior to PoS?

companyhen 9y ago
PoI - https://themerkle.com/what-is-proof-of-importance/ https://themerkle.com/what-is-proof-of-importance/ PoD - https://medium.com/research-center/nebulas-nas-ico-analysis-a-decentralized-search-engine-for-the-blockchain-441dc027a7c5 https://medium.com/research-center/nebulas-nas-ico-analysis-... I'm not too familiar yet as I just started reading about it recently, but these two links should help you understand. They're short reads.
- GordonS 9y ago
  Hmm, PoI seems almost identical to PoS, but with a 'weighting' calculation to determine 'importance' instead of using the raw value. PoD also seems also identical to PoS, but with a kind of 'gamification' element, whereby the amount staked can give you extra network privileges. TBH, at least after a quick look, both PoI and PoD seem like they are PoS systems, just with some extra bells and whistles that could be added to any PoS system.

CryptoPunk 9y ago

>>The issue with PoS is that it just makes the rich richer, the more coin you already have, the more reward you'll get. You're neglecting the fact that everyone can stake their ETH, whether they hold a bit or a lot. The rate of return on all staked ETH is equal, so the rich don't see their total ETH grow faster than the poor. While it does grow in absolute terms, their holding stays the same size relative to the total ETH supply, which will grow at the same rate as their own holding.