Author: Lloyd Fournier 2021-06-17 01:48:39
Published on: 2021-06-17T01:48:39+00:00
In a discussion about Proof-of-Stake (PoS) and Proof-of-Work (PoW), @Lloyd pointed out that while PoS may seem more secure due to not requiring expensive mining hardware, there is still the risk of amateur participation leading to fraud. @James responded by noting that this issue also exists in PoW, citing examples such as mining pools using hashing power for nefarious purposes or falling for "cloud mining" schemes. He also pointed out that the professional/expert way of participating in both PoS and PoW requires significant knowledge and resources, but the barrier to entry for the professional/expert way is much lower for PoS. Despite this, the majority of stake in PoS systems still comes from the fraud-prone amateur way of participating, while hashpower in Bitcoin mostly comes from the professional/expert way.
Updated on: 2023-06-14T20:46:41.236672+00:00