3 ms·
What is the equivalent of electricity being burnt in a PoS system? I am not seeing that cost. Not opportunity cost -- which also exists for mining Bitcoin -- bu
by rafaelero 4y ago
What is the equivalent of electricity being burnt in a PoS system? I am not seeing that cost. Not opportunity cost -- which also exists for mining Bitcoin -- but direct cost.
- lottin 4y agoIt depends on how it's implemented. PoS works by offering a randomly selected stakeholder the authority to update the blockchain. [1] One way this can be done is by requiring stakeholders to deposit a stake with a smart contract that charges negative interest. I don't know how current implementations of PoS work, but this doesn't look like rocket science. [1] https://doi.org/10.1093/rfs/hhaa075 https://doi.org/10.1093/rfs/hhaa075