Author: ZmnSCPxj 2020-01-17 13:54:50
Published on: 2020-01-17T13:54:50+00:00
The author argues that it is impossible to halt a healthy chain with a tiny investment because the invested time value per block of all honest stakers converges against the block reward. The security of bitcoin-backed Proof-of-Stake (PoS) is as strong as Proof-of-Work (PoW) because in both cases, their security is proportional to the dollar value of their block reward. However, in order to have a sidechain that is as secure as Bitcoin today, you need sidechain fees to cover both current Bitcoin fees plus current Bitcoin block rewards. The sidechain has to have more users than Bitcoin today, or higher fees than Bitcoin today. If the consumed resource does not match what is consumed under PoW, then it is not much better than a low-PoW altcoin and can be easily attacked unless it centralizes around the developers. The author notes that this path is not much better than the custodial solutions one tries to avoid anyway.
Updated on: 2023-06-13T23:10:37.193283+00:00