Author: Billy Tetrud 2021-05-26 06:53:44
Published on: 2021-05-26T06:53:44+00:00
The topic of Proof of Stake (PoS) and its security concerns is being discussed. One user suggests that using collaborative randomness could prevent a selfish minting attack, which is a security issue in PoS. Another user argues that punishments in quorum-based PoS can solve the "nothing at stake" problem but may introduce additional complexity that could lead to problems. They also mention another security issue where a powerful attacker can gain control over time in a non-optimal PoS system, leading to the network being controlled by a single entity. The debate concludes that PoS is critically insecure until these issues are solved. Proof of Burn (PoB) is suggested as a simpler and more secure alternative to PoS for cryptocurrency mining. In PoB, coins are burned to be used at a future block height, making it deterministic and preventing miners from having an incentive to mine on multiple chains. Additionally, PoB avoids energy dependence and the potential for state monopolies on mining. However, using PoS in a Bitcoin-like system presents several problems, including the need for large unsophisticated coin holders to keep their coins online, which goes against the clean separation of responsibilities in Bitcoin. PoS protocols such as Cardano and Algorand have flaws that make them inappropriate for a global settlement layer in a pure digital asset.The merits of PoS versus Proof-of-Work (PoW) consensus mechanisms for Bitcoin are debated on the bitcoin-dev mailing list. Some argue that PoS is more efficient and cost-effective than PoW, while others express concern about the potential for oligopolistic control and delegation risks that could harm the security of the network. A participant suggests a "burned coin + VDF system" as an alternative to PoW, which would require miners to burn coins in advance and compete for rewards. However, there are disagreements over the feasibility and security of such a system. Throughout the discussion, participants cite various sources and research papers to support their arguments. The conversation also includes the concept of Verifiable Delay Functions (VDFs) and their potential for enabling more consistent block times in cryptocurrencies. Zac Greenwood suggests using VDFs solely for this purpose, rather than saving energy. ZmnSCPxj acknowledges that VDFs can reduce variation in block times but highlights a potential weakness wherein miners who focus on increasing energy input to VDF circuitry may gain an unfair advantage, leading to worse competition and more energy consumption. Michael Dubrovsky, founder of PoWx, is also part of the discussion. The group acknowledges that the market will determine what constitutes "real digital gold," but stresses the importance of avoiding bad technical decisions to appease political pressure.
Updated on: 2023-06-14T21:11:21.179637+00:00