Author: Carlo Spiller 2021-06-24 08:59:12
Published on: 2021-06-24T08:59:12+00:00
There is a key difference between proof of stake (PoS) and proof of work (PoW): in PoS, the seller of the coin might still have a vested interest in the network, whereas in PoW, the person you acquire energy from to mine and mint has absolutely nothing to do with the network. With PoW, anyone with power supply can sell it to you and has no further interest in what you do with that power. If you don't find a powersupply, you can build your own.However, this is not always true for PoS. If the seller is still staked with more coins than they sold to you, they are entrenched in the network and have "permissioned" you to partake only for what they sold to you. Worse still, if a super-majority decides to never sell, you cannot acquire significant stake and participate in minting.In response to a question about the future of PoS, it was noted that if there is a healthy exchange market for a PoS coin with tens of thousands of participants, there is no significant permission needed to enter the market for minting blocks. If you make a bid on someone's coins and they refuse, you can move on to any one of the other tens of thousands of people in that marketplace.
Updated on: 2023-06-14T20:50:20.914625+00:00