Author: Eric Martindale 2021-05-08 13:44:24
Published on: 2021-05-08T13:44:24+00:00
In a post to the Bitcoin-dev mailing list, SatoshiSingh asked for opinions on implementing Proof of Stake (PoS) for Bitcoin mining. Eric Martindale, founder and CEO of Fabric, Inc., responded by stating that PoS is only resilient to ⅓ of the network demonstrating a Byzantine Fault, while Proof of Work (PoW) is resilient up to a ½ threshold. Martindale argued that PoS requires trade-offs that are incompatible with Bitcoin's objective to be a trustless digital cash. He also stated that PoS incentivizes the accumulation of wealth within a small set of actors, which is undesirable for the long-term health of any such network. According to him, entrusting the health of the network to the "economic elite" is the paramount evil with respect to Bitcoin's objectives. Furthermore, Martindale argued that PoW addresses the concern of halting the network globally to ensure its security. He went on to say that above and beyond any security consideration, PoS incentivizes the accumulation of wealth within a small set of actors, which is undesirable for the long-term health of any such network. Martindale concluded that if we are to free humanity from the tyranny of the State, we must do so by protecting the rights of every individual to hold and preserve their own value, without trusting any third party. In conclusion, Eric Martindale responded to SatoshiSingh's inquiry about implementing PoS for Bitcoin mining by arguing that PoS is not suitable for Bitcoin's objectives as a trustless digital cash. According to him, PoW addresses the concerns of halting the network globally to ensure its security and avoids incentivizing the accumulation of wealth within a small set of actors.
Updated on: 2023-06-14T21:09:13.893343+00:00