Topic: PoS -- Is it really that good? (Read 495 times)
your argument that people will hold PoS since it can generate money is pretty valid, but this would work if it wasn't a crypto-currency, but crypto-commodity
maybe PoS for a regular 1st generation coin would have the issues you touched on. what about a crypto currency that had extensible feaures such as colored coins, decentralized peer-peer exchange/dns/chat and so on? Features that encourages the coin to be used in a transactional model?
Chat... hummmmm.
PoS with Fair distribution is just perfect. Not seen any for the moment. Nxt might be interesting if top holders will share and contribute to community development.
maybe PoS for a regular 1st generation coin would have the issues you touched on. what about a crypto currency that had extensible feaures such as colored coins, decentralized peer-peer exchange/dns/chat and so on? Features that encourages the coin to be used in a transactional model?
I'm genuinely trying to think about this, and based on it, I may buy PoS coins.
ALERT -- THIS'S NOT MY FINAL OPINION; I'M TRYING TO GET TO A CONCLUSION BY DISCUSSING IT WITH THE COMMUNITY.
This post will be updated based upon my findings.
Cryptocurrencies are not commodities. It's designed to be spent and a medium to receive payments from. If a cryptocurrency is not that, it's basically a pump and dump scheme.
Actually if you see for a fair cryptocurrency which is not seen as an investment, there should be a little bit inflation, cause that way people will not hold on to it like investment; instead they'll use it to buy investments like shares and gold -- which is something to be seen as an investment.
Proof of stake is not good for a cryptocurrency. Arguments --
It encourages holding the coins as investment, avoiding it's circulation, i.e. true use as a cryptocurrency. However if the profits proof of stake is giving you is negligible, then we may nullify this disadvantage.
Then you need to run a full node in order for the wallet to mine blocks based on PoS and it should be up always; how many people will do that? (especially when the interest rate is low)? When these coins will be made popular, 90% people will run paper wallets giving power to the hands of these 10%; thus an attack may not be that hard to do.
The block mined by a PoS may not have all the transactions --
What guarantees do you take that the person holding a large amount of coins and running a full node, keeping his wallet up and who has just generated a block has a good Internet connection so as to receive all the broadcasted transactions and include it in the block? These people are not experts, they've common stuff like firewall, anti-virus which may be up blocking the incoming transactions. This's unlike miners who usually have a good Internet connection and technical understanding.
ALERT -- THIS'S NOT MY FINAL OPINION; I'M TRYING TO GET TO A CONCLUSION BY DISCUSSING IT WITH THE COMMUNITY.
This post will be updated based upon my findings.
Cryptocurrencies are not commodities. It's designed to be spent and a medium to receive payments from. If a cryptocurrency is not that, it's basically a pump and dump scheme.
Actually if you see for a fair cryptocurrency which is not seen as an investment, there should be a little bit inflation, cause that way people will not hold on to it like investment; instead they'll use it to buy investments like shares and gold -- which is something to be seen as an investment.
Proof of stake is not good for a cryptocurrency. Arguments --
It encourages holding the coins as investment, avoiding it's circulation, i.e. true use as a cryptocurrency. However if the profits proof of stake is giving you is negligible, then we may nullify this disadvantage.
Then you need to run a full node in order for the wallet to mine blocks based on PoS and it should be up always; how many people will do that? (especially when the interest rate is low)? When these coins will be made popular, 90% people will run paper wallets giving power to the hands of these 10%; thus an attack may not be that hard to do.
The block mined by a PoS may not have all the transactions --
What guarantees do you take that the person holding a large amount of coins and running a full node, keeping his wallet up and who has just generated a block has a good Internet connection so as to receive all the broadcasted transactions and include it in the block? These people are not experts, they've common stuff like firewall, anti-virus which may be up blocking the incoming transactions. This's unlike miners who usually have a good Internet connection and technical understanding.
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