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In a chain like Tezos, the validator software is relatively easy to run if you have a Raspberry Pi and some terminal chops, and a lot of hobbyists do stake this

In a chain like Tezos, the validator software is relatively easy to run if you have a Raspberry Pi and some terminal chops, and a lot of hobbyists do stake this way. But it’s easier for most people to delegate to another party. This is where decentralized staking pools for ETH2[1] built around smart contract interactions could be a good alternative for many users, and may compete with centralized staking platforms. The mere fact that these peer-to-peer and decentralized alternatives exist, and that some portion of users will prefer to use them, is what makes this technology distinct. [1] - https://rocketpool.net/ https://rocketpool.net/

ulzeraj 5y ago
> The mere fact that these peer-to-peer and decentralized alternatives exist, and that some portion of users will prefer to use them, is what makes this technology distinct. I can imagine projects that can run on cheap hardware thriving but what happens when you put the weight of exchanges like Coinbase and their users against the hobbyst node count?
- mattdesl 5y ago
  This is already happening; centralized exchanges and staking pools like Kraken make up a high percentage of ETH2 validators (just as PoW seems to gravitate toward large mining pools). Despite that, PoS has the benefit of offering decentralized staking pools like RocketPool, and the fact that they are growing may indicate that the chain will over time become more decentralized and less able to be centrally attacked[1]. The PoS mechanism itself is also perhaps more resilient to these kind of attacks, see [2]. None of this mechanism is as simple as PoW (which has worked quite well for BTC and ETH so far), but the environmental cost makes it worth exploring an alternative mechanism. [1] - https://uk.style.yahoo.com/valid-points-ethereum-2-0-113000527.html https://uk.style.yahoo.com/valid-points-ethereum-2-0-1130005... [2] - https://vitalik.ca/general/2020/11/06/pos2020.html https://vitalik.ca/general/2020/11/06/pos2020.html

ulzeraj 5y ago

> The mere fact that these peer-to-peer and decentralized alternatives exist, and that some portion of users will prefer to use them, is what makes this technology distinct. I can imagine projects that can run on cheap hardware thriving but what happens when you put the weight of exchanges like Coinbase and their users against the hobbyst node count?

mattdesl 5y ago
This is already happening; centralized exchanges and staking pools like Kraken make up a high percentage of ETH2 validators (just as PoW seems to gravitate toward large mining pools). Despite that, PoS has the benefit of offering decentralized staking pools like RocketPool, and the fact that they are growing may indicate that the chain will over time become more decentralized and less able to be centrally attacked[1]. The PoS mechanism itself is also perhaps more resilient to these kind of attacks, see [2]. None of this mechanism is as simple as PoW (which has worked quite well for BTC and ETH so far), but the environmental cost makes it worth exploring an alternative mechanism. [1] - https://uk.style.yahoo.com/valid-points-ethereum-2-0-113000527.html https://uk.style.yahoo.com/valid-points-ethereum-2-0-1130005... [2] - https://vitalik.ca/general/2020/11/06/pos2020.html https://vitalik.ca/general/2020/11/06/pos2020.html