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You need a good initial distribution. With Bitcoin mining pools it looks like there's just as much centralization (if not more) as with proof of stake.
by Tepix 5y ago
You need a good initial distribution.
With Bitcoin mining pools it looks like there's just as much centralization (if not more) as with proof of stake.
- atweiden 5y agoThe difference being you don’t need to ask existing Bitcoin miners for permission to begin mining Bitcoin yourself. Conversely, staking is inherently impossible without first obtaining “stake” — and how can you obtain stake without the approval of existing stakers?
- Tepix 5y agoYou don't need permission, but you do need money to buy mining hardware. Might as well buy a stake for that money instead. Same thing, isn't it?
- atweiden 5y ago> Same thing, isn't it? US dollar payments aren’t subject to the approval of stakers, and existing PoW miners have no on-chain mechanism to prevent new market entrants from competing against them for hashrate. So, “no”. To begin staking, you first need stake. But merely transfering a PoS coin from an exchange to your own wallet for subsequent staking is inherently impossible without the approval of existing stakers. Even this isn’t enough: existing stakers must also approve of your initial staking transactions. Which is not how PoW mining works.