frolov_max
10 months ago  Karma: 709
Why Ethereum plans to move to Proof of Stake?

As I undertood, since the foundation Ethereum uses proof of work consesus algorirth similar to one Bitcoin is running on. There are multiple topics on forums about Raiden, Casper, Plazma, and some other research initiatives that are named to be 'future' of Ethereum. So why are we not satisfied with what we already have and what major blockchains are using, and seeking to find other consensus mechanisms?

ethereum
consensus
frolov_max
10 months ago  Karma: 709
Why Ethereum plans to move to Proof of Stake?

As I undertood, since the foundation Ethereum uses proof of work consesus algorirth similar to one Bitcoin is running on. There are multiple topics on forums about Raiden, Casper, Plazma, and some other research initiatives that are named to be 'future' of Ethereum. So why are we not satisfied with what we already have and what major blockchains are using, and seeking to find other consensus mechanisms?

ethereum
consensus

ONE ANSWER
ultradm2
9 months ago Karma: 80

The problem with Proof of Work is that by design the mechanism to protect the network from abuse is to make it really expensive to do so in terms of compute power (that translates to electricity consumption)

While the mechanism itself is good at preventing abuse, the more popular the blockchain is (be it Bitcoin, Ethereum or any other) the more miners join in and that in turn increases the electricity consumption.

This results in large resources being spent for nothing useful other than protecting the consensus.

Proof of Stake on the other hand aims at slashing the resources consumption and have the miners block their funds for the purpose of mining.

Cheating would result in slashing of the funds.

Attacking the network (51% attack) would be as expensive as PoW since one would need to have the majority of the funds in his/her "pocket" :)

The problem with Proof of Work is that by design the mechanism to protect the network from abuse is to make it really expensive to do so in terms of compute power (that translates to electricity consumption)

While the mechanism itself is good at preventing abuse, the more popular the blockchain is (be it Bitcoin, Ethereum or any other) the more miners join in and that in turn increases the electricity consumption.

This results in large resources being spent for nothing useful other than protecting the consensus.

Proof of Stake on the other hand aims at slashing the resources consumption and have the miners block their funds for the purpose of mining.

Cheating would result in slashing of the funds.

Attacking the network (51% attack) would be as expensive as PoW since one would need to have the majority of the funds in his/her "pocket" :)

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