PoS that often changes clothes

In the early 1990s, I regularly drove between San Luis Obispo and Los Angeles to visit my parents. Before podcasts and Pandora streaming music service providers appeared, I sometimes listened to radio sermons when I was bored. I clearly remember that I once heard a missionary answering questions from the audience on the radio. He said in a low, old voice: “How do we know what the Bible says is true?” Then he didn’t make any ironic pauses. , Said indifferently: “We know that the Bible is true… Because that’s what the Bible tells us.”


People have many concerns about the economic and environmental costs of PoW cryptocurrencies. Some people suggest turning to proof of interest to avoid most of the cost. This made the same mistake as the old missionary.

Cryptocurrency is essentially a list of transactions , but also a protocol that can determine which transactions can be added to the list .

In simple terms, the PoS system works as follows:

  • There is a list of valid transactions to determine the ownership of the token
  • <complexity>
  • The holder of the token decides which transactions are valid

You don’t need to know more about the details of the PoS system, you will be suspicious. The more detailed you understand, the heavier your suspicion will be: the history of perpetual motion is to reduce the transparency of the second step, causing investors to forget the connection between the first and third steps.


Is PoS feasible?

Of course, it will be feasible for some time or even a long time in the future. It is very easy to reach consensus when everyone agrees. However, if the timeline is stretched long enough, conflicts that are difficult to resolve will occur. Even wise and respected leaders only have a few decades, and some even died young.

PoS is essentially self-referential. It is very likely that there will be two identical and equally effective chains. The only difference may be that the pledgers on the two chains are different. Since “staking” is limited to the inside of the blockchain, it cannot be used to choose between the two chains. Under appropriate pressure, an unwritten meta-consensus agreement will eventually appear to decide “which chain we should focus on.” The specific agreement depends on the nature of the fork.

What happens if consensus fails?

One risk is that evenly matched forks will occur, which will lead to long-term disputes within the community, such as how to adjust the pledge reward, how to “repair” the damaged/hacked contract, how to deal with the stolen deposit, and so on.

I have no opinion on the ETH /ETC split. Since most miners chose ETH, the trauma caused by this split has been healed. Now, the security of ETC is much lower than that of ETH, and it has experienced several 51% attacks. The centralization of computing power (a limited resource) creates a positive feedback loop, encouraging the remaining computing power to abandon smaller forks.

Forking a PoS chain can create two chains, one of which will be approved by most pledgers. This kind of fork will repeat endlessly. Which chain is “true”?

I think Matt Levine has something to say: “To some extent, the night guard is the real controller of the company.” Whoever has the key to the door can gain control. Which fork chain the exchange chooses will adopt its “codename”, but who can guarantee that all exchanges will recognize the same fork chain? This can lead to a chaotic and unpredictable situation.

But I have a way to solve this problem!

When describing a PoS chain, don’t say “you have an influence on this chain because this chain says so”.


Original link: https://github.com/stickfigure/blog/wiki/Proof-Of-Stake-Wears-No-Clothes
Author: Jeff Schnitzer


Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/pos-that-often-changes-clothes/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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