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Comparing lightning network to a base layer consensus mechanism is ignorant.
Proof of stake has been debunked many times over. Quick thread.
Proof of stake has been debunked many times over. Quick thread.
Really simply, proof of work incurs real world cost in energy to root security and incentives, while PoS doesn't. 1/
2/ PoS is a perpetual motion machine.
Money is not a shared illusion. It's a shared observation. We observe a thing is scarce and secure as it withstands attacks and remains robust and unaltered.
Perpetual motion machines are *not* Byzantine Fault Tolerant btw.
Money is not a shared illusion. It's a shared observation. We observe a thing is scarce and secure as it withstands attacks and remains robust and unaltered.
Perpetual motion machines are *not* Byzantine Fault Tolerant btw.
3/ The argument, "an attacker of PoS will need to buy a majority stake," is ignorant of byzantine fault tolerance.
The attacker is already amongst you.
Note: 70% of outstanding ether was premined. Yikes.
The attacker is already amongst you.
Note: 70% of outstanding ether was premined. Yikes.
4/ Mining and staking share the source of marginal revenue, the block reward (reward*price). However, they don't share a source of marginal cost.
In fact, PoS advocates believe marginal cost can be zero.
In fact, PoS advocates believe marginal cost can be zero.
5/ Believing a zero marginal cost is able to support robust incentives, security, and byzantine fault tolerance betrays a lack economic understanding. It's not possible.
6/ Participants will incur cost somewhere, whether through marketing, social engineering, or dishonest behavior.
Most likely, their behavior will drag marginal revenue down to their marginal cost, not the other way around.
Most likely, their behavior will drag marginal revenue down to their marginal cost, not the other way around.
