geraldo.nogueira56
2 months ago  Karma: 65
Why is PoS such a big deal?

These days, everybody talks about PoS. However, Bitcoin, the most important crypto, is not using it and has no plans of doing so (correct me if I'm wrong). Can anyone please explain why PoS is such a big deal?

en
#pos
geraldo.nogueira56
2 months ago  Karma: 65
Why is PoS such a big deal?

These days, everybody talks about PoS. However, Bitcoin, the most important crypto, is not using it and has no plans of doing so (correct me if I'm wrong). Can anyone please explain why PoS is such a big deal?

en
#pos

4 ANSWERS
kaijchang2
2 months ago Karma: 18743

PoS is being talked about a lot because it is more efficient than POW and lowers the chance of malicious attacks. This is because it doesn't require mining, and an attack requires owning a majority of the currency instead of a majority of the hash power. Bitcoin is POW, and switching to PoS would require a hard fork.

PoS is being talked about a lot because it is more efficient than POW and lowers the chance of malicious attacks. This is because it doesn't require mining, and an attack requires owning a majority of the currency instead of a majority of the hash power. Bitcoin is POW, and switching to PoS would require a hard fork.

alain_duclos9952
2 months ago Karma: 106

I just answered a similar question here: https://delegatecall.com/questions/what-are-your-top-blockchain-predictions-for-the-next-5-years-a13f7727-d1d2-4296-abb2-970916830eff

When compared to PoW, Pos brings important benefits that are hard to ignore:
- significantly reduces electricity consumption and hardware costs
- new economic models will become feasible. With PoW, token generation is necessary to secure the network. PoS doesn't require new tokens to be generated. Even more, tokens could be burned to increase their value.
- attacks are becoming more expensive because you risk losing your stake.
- increased decentralization because people will be able to stake their tokens in pools.

I just answered a similar question here: https://delegatecall.com/questions/what-are-your-top-blockchain-predictions-for-the-next-5-years-a13f7727-d1d2-4296-abb2-970916830eff

When compared to PoW, Pos brings important benefits that are hard to ignore:
- significantly reduces electricity consumption and hardware costs
- new economic models will become feasible. With PoW, token generation is necessary to secure the network. PoS doesn't require new tokens to be generated. Even more, tokens could be burned to increase their value.
- attacks are becoming more expensive because you risk losing your stake.
- increased decentralization because people will be able to stake their tokens in pools.

silverio_bussone
2 months ago Karma: 70

It should be also mentioned that PoS really breaks the ties with fiat.
PoW requires powerful machines and electricity to secure the network. But these are still paid with fiat and one might argue that, ironically, fiat is still the backbone of PoW based blockchains.
Conversely, PoS doesn’t rely on hardware or electricity. Hence, It is more aligned with the promise of cryptocurrencies of building a new economic system.

It should be also mentioned that PoS really breaks the ties with fiat.
PoW requires powerful machines and electricity to secure the network. But these are still paid with fiat and one might argue that, ironically, fiat is still the backbone of PoW based blockchains.
Conversely, PoS doesn’t rely on hardware or electricity. Hence, It is more aligned with the promise of cryptocurrencies of building a new economic system.

jowla
2 months ago Karma: 808

PoS also solves the issue of misaligned incentives. With PoW, miners don't have to hold coins and their only incentive is to get as much money as possible from fees and block rewards. Thus, it is possible that miners and developers end up on different sides when a new feature that is beneficial for users is suggested.
PoS, on the other hand, makes sure that everyone is "on the same side" and the interests of all actors are aligned.

PoS also solves the issue of misaligned incentives. With PoW, miners don't have to hold coins and their only incentive is to get as much money as possible from fees and block rewards. Thus, it is possible that miners and developers end up on different sides when a new feature that is beneficial for users is suggested.
PoS, on the other hand, makes sure that everyone is "on the same side" and the interests of all actors are aligned.

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