65
Comments (40)
sorted by:
40
dekachin 40 points ago +40 / -0

Completed under the big budget marketing campaign of a “climate friendly” and ESG compliant reshuffle, the Ethereum protocol moved from a proof of work system — which borrowed from Bitcoin’s model of distributed, decentralized computing power (work) for validating the network — to a proof of stake system, which relies on dominant stakeholders to do the same. Unlike Bitcoin’s proof of work system, which provides for robust decentralization and individual security, ETH is now set up so a select few “stakeholders” can determine the outcome of the entire system. The dominant stakeholders can simply get together and manipulate the protocol as they see fit.

I saw a post celebrating this on the front page of r-all, so you know it's bad. Also most of the comments were bubbletards thinking this would make ETH go up in price.

It actually went down instead.

27
CatoTheElder 27 points ago +28 / -1

If the protocol was centralized enough that someone could unilaterally change the proof, then it was never a cryptocurrency in the first place.

21
AbleistSL [S] 21 points ago +21 / -0

Figured that would happen.

While I think a proof of stake network would be great for a decentralized payment processor, this bullshit is nothing but trouble.

10
subbookkeeper 10 points ago +10 / -0

I remember hearing the explanation of proof of work v proof of stake a few years back but I've forgotten since.

What does it boil down too again?

3
CatoTheElder 3 points ago +4 / -1

Proof of work requires a cryptominer to repeatedly calculate the hash of a block+a random number until said hash has so many leading zeros determined by a difficulty target that is computed from the blockchain itself. Since a hash is typically viewed as a one-way function the only way to get a satisfactory hash is brute force. This requires a lot of computational "work". The one-way function property of the hash function means that anyone who wants to abuse the system has to outpace all the other miners combined, doubling the global hashrate overnight.

Proof of stake requires a cryptominer to have control over a certain percentage of the total tokens. It essentially requires that each block is then signed by a stakeholder. This relies on the assumption that anyone who could erode trust in such a system would also be harmed by such an action. Of course this relies on all stakeholders being what game theory refers to as "rational actors".

The criticism that cryptominers waste energy is valid, but PoS is not the way to fix that.

0
krzyzowiec 0 points ago +1 / -1

The criticism that cryptominers waste energy is valid, but PoS is not the way to fix that.

It's not valid. Energy is produced by us in order to be consumed. If it were truly a waste and served no useful purpose, then you wouldn't be able to make a profit doing it.

1
Fjrnjsjdj 1 point ago +1 / -0

A bitcoin is literally nothing. It is an imaginary coin. Our fiat paper is bad but crypto is worse. When your internet or electricity is turned off it is useless.

Crypto is bullshit.

1
when_we_win_remember 1 point ago +1 / -0

Basically the problem is the same as the solution: it requires less computing power to run a validator. Therefore someone with tons of coin but controlling a relatively small amount of the attached computing power can exert undue influence.

They set the bar high, too. It requires $750 of computer to run a validator, but you have to stake $50k worth of coin. If it were just the computer, you'd have a million nerds running nodes from their basements. I guess they have to make the stake high enough that there is a real penalty for bad actors, but the value is discouraging what they claim to want. The solution to that was stake pools... which are themselves centralized (in fact, there's basically one that everyone is using).

Which does make the whole thing stink, IMO. I don't have a dog in this fight -- I own very little crypto and no ETH, but I spent most of the day reading about this.

7
Grumman 7 points ago +7 / -0

Unlike Bitcoin’s proof of work system, which provides for robust decentralization and individual security

Bitcoin's proof of work system does not provide for robust decentralisation, because it has no mechanism with which to enforce said requirement. Absent such a mechanism, regular market forces cause Bitcoin to become centralised wherever has the greatest competitive advantage, which is why 2/3rds to 3/4ths of all Bitcoin mining capacity was allowed to fall under the physical control of a single totalitarian regime until said regime kicked them out.

26
LesboPregnancyScare 26 points ago +27 / -1

crypto is down

rocks are down

USD is down

stocks are down

property is overvalued, coupled with inflation and higher mortgage

what to do what to do.

22
TheImpossible1 22 points ago +31 / -9

Short everything with a female CEO. It's working for me.

8
redkrab 8 points ago +8 / -0

amd too?

7
TheImpossible1 7 points ago +12 / -5

Probably too late for that one. I didn't go for it.

I'd also probably steer clear of AWK. Just a gut feeling on that.

Bumble was a really good target, 35 to 25 since I was told (here) that it wasn't a good short target. And now 23. Should I take my profits now?

I think PG has some potential as a short, based off most of their brands being easy to switch for store brand. It's a risk though, because their sector usually overperforms in bear markets.

Unrelated to the theme, but I think Victoria's Secret has a long way to fall. Especially with the Epstein ties.

Edit : After reading the FedEx report, UPS is a candidate I would look into.

This is not professional financial advice, any losses you incur from it are not my liability.

13
dylan 13 points ago +13 / -0

Too late, sunk all my money into shorting forever 21. Take that women!

-1
TheImpossible1 -1 points ago +4 / -5

Forever 21 isn't even publicly traded.

6
dylan 6 points ago +6 / -0

Dam you got me I was trying to bamboozle u

3
WhitePhoenix 3 points ago +3 / -0

My friend, look up.

That's the joke flying over your head.

5
LesboPregnancyScare 5 points ago +6 / -1

lol. true. And anything you see with a high ESG score. They may be able to secure funding, but their business will not produce revenue over time and be forced to change or go under.

8
LibertyPrimeWasRight 8 points ago +8 / -0

Short some stuff, and/or keep working on the bunker?

4
Hullohoomans 4 points ago +4 / -0

Gold is up, no?

3
SisyphusRockAndRoll 3 points ago +3 / -0

berry up ?

3
WhitePhoenix 3 points ago +3 / -0

buy gold

19
ApparentlyImAHeretic 19 points ago +20 / -1

climate friendly.

You're telling me a currency in which hundreds of thousands of people across the world have high power PCs running 24/7 to mine this coin, and requires the electrical grid in order to even function, is more climate friendly than straight up coins or paper? Clown world indeed.

10
TeeBP 10 points ago +10 / -0

B-but to make paper you need to burn down all the trees!

5
Lurker404 5 points ago +5 / -0

Does anyone even use paper anymore? Haven't most countries moved to highly complex plastic bills these days?

2
Yashimata 2 points ago +2 / -0

plastic

So oil then? Sounds very environmental.

2
when_we_win_remember 2 points ago +2 / -0

If you make your own coins, the government will come kick your ass.

2
You_Are_Based 2 points ago +2 / -0

You have it mixed up, the system you refer to is proof of work. They have switched away from that to proof of stake, which is explained elsewhere in the thread.

1
krzyzowiec 1 point ago +1 / -0

It's a lot more efficient than coins or paper.

10
ryry117 10 points ago +10 / -0

Just exchanged all my Ethereum for Bitcoin. I'll probably move the funds that were Ethereum into something else later, but yeah I'm not supporting this lol.

Edit: Bought Monero. Thanks frens!

9
trump4045 9 points ago +10 / -1

Monero is better than BTC.

5
WhitePhoenix 5 points ago +5 / -0

Get Monero bro

9
Ralt 9 points ago +9 / -0

Ethereum was completely centralized trash from day one. Turning into PoS for the "climate" and getting in bed with the WEF sounds just about right for those faggots.

3
realerfunction 3 points ago +3 / -0

wef delenda est

3
ah_hell 3 points ago +4 / -1

Goddam it.

2
TomSeeSaw 2 points ago +2 / -0

Crypto grifters?

Say it ain't so.

0
TheImpossible1 0 points ago +3 / -3

All in on Ethereum Classic?

5
tobeornotto2 5 points ago +5 / -0

The value of a network is the value of the people building on that network.

As such ETC is worthless, because it's a wasteland.

4
ryry117 4 points ago +4 / -0

Is that one resistant to its proof changing?