So instead a cartel of miners you'll get a cartel of crypto-banks and exchanges with lots of coins in their cold wallets for which they'll additionally earn interest, without having to reinvest in new generation hardware. MtGox would have dominated a PoS-version of Bitcoin quite exclusively back then.
Not that I know of any better solution, concentration of wealth and power seems to be a general problem inherent in capitalism, or possibly even any imaginable form of human society.
Topic: Proof-of-stake is more decentralized, efficient and secure than PoW- white paper - page 10. (Read 9955 times)
March 30, 2015, 11:12:16 AM
March 30, 2015, 10:42:12 AM
neucoin.org/en/whitepaper
Facts:
Myth: there is “nothing at stake” in PoS, or in other words, since PoS mining doesn’t consume outside resources, it’s costless for attackers to keep trying to modify transaction history until they succeed. The truth is that PoS security does have a cost: the capital cost of acquiring and holding coins. And the actual probabilities of “until they succeed” have never been mathematically analyzed.
Folklore: Poelstra’s paper Distributed Consensus from Proof of Stake is Impossible. The author even admits in his own conclusion: “there is no rigorous argument that it is impossible to obtain a distributed consensus without provably consuming some resource outside the system.”
The NeuCoin Project’s 39-page white paper mathematically demonstrates how PoS can maintain consensus and defeat all attack vectors - including grinding, history revision and pre-programmed attacks. Bounties for anyone who points out flaws in the paper.
Facts:
- PoW mining is an incredibly inefficient way of processing transactions. Bitcoin miners earn roughly $1 million per day for processing just 100,000 transactions - $10 each.
- An oligopoly of corporate miners has taken control of the Bitcoin network - decentralization is gone.
- Bitcoin holders are reluctant to debate competitive alternatives to PoW such as PoS and trusted nodes (like Ripple, despite its nearly $1B market cap).
Myth: there is “nothing at stake” in PoS, or in other words, since PoS mining doesn’t consume outside resources, it’s costless for attackers to keep trying to modify transaction history until they succeed. The truth is that PoS security does have a cost: the capital cost of acquiring and holding coins. And the actual probabilities of “until they succeed” have never been mathematically analyzed.
Folklore: Poelstra’s paper Distributed Consensus from Proof of Stake is Impossible. The author even admits in his own conclusion: “there is no rigorous argument that it is impossible to obtain a distributed consensus without provably consuming some resource outside the system.”
The NeuCoin Project’s 39-page white paper mathematically demonstrates how PoS can maintain consensus and defeat all attack vectors - including grinding, history revision and pre-programmed attacks. Bounties for anyone who points out flaws in the paper.
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