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Can someone continue the staking analogy? What exactly is being staked? You put a bunch of bricks in the center and randomly choose one, then return the remaini
by Gunax 6y ago
Can someone continue the staking analogy? What exactly is being staked? You put a bunch of bricks in the center and randomly choose one, then return the remaining bricks to their owners?
- sliken 6y agoIt falls a part a bit. You don't need to stake to use a proof of stake system, much like in bitcoin you don't have to mine to use bitcoin. But generally the bricks you have in play can be lost if the network thinks you are cheating, even lying by omission (downtime) is penalized. So to try to change the blockchain (to allow double spending or zero someone's zccount) or even not to vote for the valid blockchain can be penalized by losing your staked bricks. Another detail lost on the analogy is people get more bricks, just before being a good network citizen by helping the network and staking your bricks.
- whytaka 6y agoWhat's being staked is ETH (or any other units of PoS-based cryptocurrency) itself. The lock-in, and therefore any opportunity cost associated with the locked-in value, is the price to play. The analogy, to my understanding, is not 100% faithful to how PoS works, at least in Ethereum. There's no choosing one of the bricks, or one of the units of currency or anything. You simply lock in your units as collateral for your right to take part in the dice roll selection where, if chosen, you get to add a new block to the blockchain. If you append a block without cheating, you are rewarded with new units of the currency. If you cheat, your collateral is taken away. You may choose to keep your stake in as long as you want.