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>>they are a shared, permissionless and open source protocol that is resistant to takeover by a single entity And to prevent that takeover by a single entity (
by yashg 4y ago
>>they are a shared, permissionless and open source protocol that is resistant to takeover by a single entity
And to prevent that takeover by a single entity (AKA 51% attack) it uses a very expensive (as in processing power) mechanism - proof-of-work to delegate the right of adding new transactions to the chain. And that makes is unscalable because as the network grows, you need more processing power. It flies in the face of economies of scale. It's a feature not a bug but that also makes it unsuitable for any business use cases.
Like any other market, consolidation will eventually lead to 2-3 whales will end up controlling majority of the nodes and can control an entire chain. In fact some of the new age blockchain startups are straight up centralized. What they are peddling is anything but a shared, permission-less and trust-less blockchain.
- whatisweb3 4y agoThis argument rests on the idea that blockchains cannot operate without Proof of Work, but this statement is untrue as there are several decentralized blockchains running today and securing millions of dollars on Proof of Stake. Ethereum has successfully merged Proof of Stake on all of its test networks, and is aiming for a complete merge on the main network some time next month.
- yashg 4y agohttps://antsstyle.medium.com/explanation-of-blockchain-consensus-algorithms-pow-pos-etc-735fa50d93c8 https://antsstyle.medium.com/explanation-of-blockchain-conse...
- whatisweb3 4y agoThis is an extremely poorly researched article. If somebody were to spend a dozen billion dollars to gain 51% control of Eth PoS, the users could coordinate to ignore their chain, or even burn their stake and destroy their purchased funds. You can read about the economics of it here: https://vitalik.ca/general/2020/11/06/pos2020.html https://vitalik.ca/general/2020/11/06/pos2020.html