Author: James MacWhyte 2021-06-15 11:13:10
Published on: 2021-06-15T11:13:10+00:00
In Algorand, a set of "participation keys" can be authorized to create blocks on behalf of a coin holding key. However, this leaves room for potential attacks as the participation keys can be sent to malicious parties offering high returns. This is similar to the Proof-of-SquareSpace issue in PoW, where expensive hardware must be purchased and configured for solo mining or joining a mining pool that may have nefarious purposes. Alternatively, one may fall for a "cloud mining" scheme with a pretty website and high rates of return. In terms of PoS, setting up one's own validator is similar to buying mining hardware in PoW. Both PoW and PoS have professional/expert ways of participating and amateur ways that are prone to fraud. However, with PoS, the professional/expert way is accessible to anyone with a raspberry Pi and web connection, which has a lower barrier to entry than PoW.
Updated on: 2023-06-14T21:25:55.830053+00:00