The Ethereum network just backstabbed the community by partnering with WEF.
(dossier.substack.com)
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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.
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?
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.
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.
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.