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That's simply not true. Proof of work is nothing but an extremely expensive to randomly select the entity that gets to finalize the next block. The system leaks
by acjohnson55 5y ago
That's simply not true. Proof of work is nothing but an extremely expensive to randomly select the entity that gets to finalize the next block. The system leaks value like a sieve. Either the miners have to be compensated by printing money--and devaluaing everyone else's holdings--or by the transaction fees of a system that has a hard practical and ideological limits on its transaction capacity.
Avalanche already provides a compelling and less wasteful alternative, and it might not even be the last word.
This idea that Bitcoin got it all just right has become a quasi-religious belief, fueled by the motivated reasoning of monetary interest and ideological fantasy.
- randomhodler84 5y agoYes it is true! You still don’t get it, and I don’t think I can convince you. Energy = Security. This is an fundamental axiom. Security of transactional data grows with every block in a PoW chain. PoS finally breaks down to mutant PoW with stake grinding; among other oligarchical concerns. We must spend energy to sustain the hardest money humans have known. Yes, it is a deep ideology that a monetary network must incur ongoing continued capital investment! Everyone looking for a cheap n easy way out with PoS. No free lunch.
- acjohnson55 5y agoYou're right that it is an axiom: "a statement or proposition which is regarded as being established, accepted, or self-evidently true." There's nothing "hard" about money that requires a nation's worth of energy simply to continue to exist. Proof of stake isn't fundamentally flawed, and proof of work isn't perfect. They both have many variations, and there's certainly many more to explore yet. The only free lunch I see people pining for is the idea that they can squat on a wasteful, moribund asset, expecting it to be worth much more in the future.