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> And then there is someone who wants to post some stuff against F2pool. What is stopping F2pool from manipulating the feed? It's the difference between 'unsta
by splintercell 8y ago
> And then there is someone who wants to post some stuff against F2pool. What is stopping F2pool from manipulating the feed?
It's the difference between 'unstable equilibrium' vs 'stable equilibrium'.
The power of a centralized entity on their service, like twitter on a feed is a stable equilibrium, they can modify something and not face too many repercussions (like when we see what happened with Wells Fargo scandal).
On the other hand, the power of a major player in a decentralized setup is an 'unstable equilibrium', if you modify something into your favor, your power goes away really fast. And cryptocurrency networks have shown that they are extremely sensitive towards any changes or abuse of power made by a major player. It also makes a lot of sense from game theoretic perspective.
The hard fork made by the Ethereum community was such an example, it was so contentious that even though they succeeded, they are very resistant towards any such changes in future.
With Proof of Stake, the 'stability' of unstable equilibrium of F2Pool (presuming F2Pool is a large staking pool at that point) becomes even more unstable. In PoW if F2Pool performs a harmful action, then any attempts to undo that harmful action does not harm F2Pool, they just neutralize their attempt.
Whereas in PoS consensus, any attempts by F2Pool to perform a harmful action would result in them losing their wealth.