3 ms·
You must be in a time machine. The security does not depend on underlying value (that's proof of stake), it depends on hash power, which is not a function of va
by mattwilsonn888 5y ago
You must be in a time machine. The security does not depend on underlying value (that's proof of stake), it depends on hash power, which is not a function of value, it is the input to the value function. If the value of the coin dropped then hash power would decline, but the rewards for out-hashing someone would also drop - it wouldn't affect security, you're all mixed up!
- lmm 5y ago> If the value of the coin dropped then hash power would decline, but the rewards for out-hashing someone would also drop - it wouldn't affect security The coin rewards would drop, but the rewards for being able to steal whatever else is running on top of the chain stay the same. So to be secure the layer 1 chain has to stay more valuable than everything else that's being secured on top of it, otherwise it becomes worth doing a 51% attack on the underlying chain to get the stuff on top.