Proof of Stake - Benefits and Flaws.
ฝัง
- เผยแพร่เมื่อ 16 พ.ค. 2021
- In this video I explain proof of stake, and some of its benefits as well as its flaws.
der8auer CHIA video
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long range attacks explained in detail
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Mental Outlaw's cooking videos already demonstrated his proof of steak
@CanadianOtaku Or Creepo meat = Doge/Elon
That's what I saw for a second when I looked at the title.
Proof of Tendies.
So we all gonna ignore the fact at 1:03 that Gaming in California is using more electricity than whole Ghana 😂
How about gaming in the world?
Have you noticed that comparing BTC electricity consumption to small countries is making no sense!
A fair Comparison is comparing BTC to other industries and acknowledge all energy sources like oil 🛢️ and gas! If crypto fans wants a greener planet just simply don t consume and stay poor! Money is for consuming more, what ever you buy it,s never totally green 💚
@@freedomisdead9638 colombia is on that list, not a small country, also those industries produce tangible products while crypto mining doea not
@@Pissmail Colombia GDP per capita is ranked 113 country in the world, between Albania and Honduras, so colombia is a small country,, the topic ain t Geography here but energy consumption, so i am right when i am saying that Columbia is a small country and you are wrong to argue with that fact!
@@Pissmail co2 emission in crypto is propaganda in order to make it centralized aka proof of stake, the only guys who will benefit in proof of stake are giant crypto exchange companies like binance and coinbase. blue collar people will be gone in crypto in the future.
@@Pissmail Define tangible? Why virtual assets are different than other assets? It is not from nowhere that those codes appears, some work have to be done... If it was merely "untangible", people wouldn't find value on it...
Great and beginner friendly as always!
you're first!
I like how you used a fusion reactor for your example of electricity generation.
finally, needed a video from you about PoS
@@censoredterminalautism4073 he meant PoS!!!
@@purplep3466 Weird. Two comments of mine in two different channels, that got responses, just disappeared while I was asleep, and neither of them even said anything that anyone would have a problem with. I guess it's revenge for talking shit about China, huh, TH-cam?
@@censoredterminalautism4073 you are delusional and crazy
@@KookoCraft Look, the guy responded to an innocuous comment that isn't there. I didn't delete it, and there is no way in hell that MO did. Another one in another channel disappeared too. I woke up and saw responses to comments that weren't there anymore. They certainly were posted, or people wouldn't have seen them. A comment about hoping that Chia fails also disappeared. But I did find one about the red plague that is still there, so I guess it was something else this time.
PoS = Piece of Shit
1:16 > the real problem is how electricity is produced
> nuclearfusion.jpg
if only...
Hopefully soon...TM
really got all the important stuff in there, great video
Just when I needed this explanation the most
The difference between PoS and PoW is that it's easier to quantify how much money is required for an attack.
There is a barrier to entry for mining in that you have to learn how to mine then source hardware, space, and power. At which point you're disincentivized to attack... PoS boils away the time-cost of doing this and makes it purely financial.
Also over the course of 1-200 years we have no idea how much wealth and power will be aggregated into PoS, essentially making it impossible for a common person to participate in a meaningful way. Using CPUs and GPUs we can keep it more accessible as computing technology improves and ages out old tech. Unless of course people's staked eth also 'ages out'
Agree. This barrier is actually fundamental.
The fact that the most resource-demanding operation in proof of work is solely there for security purposes and the fact that proof of stake has very little security has me thinking that all of the gains in efficiency will simply vanish once PoS increases security and consequently massively increases complexity.
Mining is only part of the equation.
What about nodes? A common pleb like myself, in any industrialized nation, can run a full Bitcoin node. That puts power into the hands of common people.
Proof of Stake offers no such hope.
I literally read proof of steaks given the type of videos mental outlaw produces
You are not alone, I read that too.
Finally! Was hoping for a video about this for a long time
Talk about PASS, the Standard Unix Password manager, I would like to see your take on it
KeePass.
@@MelroyvandenBerg nope, pass, no more, no less. It has proven its superiority to me, and I am grateful for it
@@joelchrono genuine question I would like to switch to pass but how do you access your passwords stored using pass on other devices? Say windows, android or macs.
@@herbertwestiron there's password store app for android, for Windows i haven't tried
@@MB-up3mh ok thanks
Could you make a video on how to self-host a secure email?
Luke has some tutorials and a script for that btw
just search on the web and you ll find dozens of tutorial
PS: youtube is the last place where you should search for tutorial
@@luxraider5384 why? TH-cam tutorials are often great
@@Cookiekeks as far as you ll get advanced u ll find no tutorial. it s good to learn how to find the information it s its purest and most complete form
@@Cookiekeks youtube tutorials are basic and usually do not go into the fine details
Behold - blockchain feudalism (distinct from proof of work processing) born in the name of environmentalism. Sure the little guys can play too, (for now) but each node can write its own transaction rules, require their own permissions, recognize consensus or not [or fabricate their own; perhaps in a creditor cartel dominating more of the chain than anyone else, limiting transactions outside of their blessings and slowing the rest to a crawl, reproducing credit authority and thus subverting the entire principle of blockchaining via decentralized free market where capital still be like it always do.]
Absolutely agree. Can u elaborate a little mir ein Detail everything u said?
For the record bitcoin has twice the userbase of the country of Colombia estimated at around 100 million compared to the 50 million resident of Colombia
And it offers a tamper proof network that NO ONE has managed to successfully attack, even with a trillion dollars on the line.
bUt ThE eNvIrOnMeNt GuYs
Amazing video! Thanks
The issue that I see with Proof of Stake is more that the only way to become a validator is to spend money *specifically to become a validator.* Proof of Work on the other hand allows (at least in theory) anyone with a decent computer to become a validator.
Proof of Work should still be the goal IMO, but with some mechanism that causes steep diminishing returns, to try return it to the original concept of "while you're not using your computer for work or leisure, it's processing transactions for the world." That kind of decentralisation is the dream, and PoS abandons that.
Exactly. Having validates require large amount of capital investments, hence they won’t act as bad actors and will try to promote the growth of th e network for their own good.
@@shakespear7675 are you serious? Ever heard about George Soros and his attack of the British pound.
That’s exactly what chia addresses.
PoS is quite literally the polar opposite of Satoshi's vision for a decentralized economy.
Mental Outlaw is severely underplaying the issues with PoS
But what if people don’t want 20 dollar transaction fees?
Comparing Bitcoin to a first world country with a similar population makes more sense in my opinion. Japan has about the same population of 120-130 million people and uses 1000+ TWh compared to Bitcoin's ~130 TWh
Are you familiar with the RChain project and the cooperative associated with it? It's already using the PoS on the mainnet. Their developers and mathematicians were deeply involved in the Casper Protocol development, notably the coop founder, Lucius "Greg" Meredith.
Rholang, their smart contract language works like a query language at the same time, meaning the chain is actually a decentralized database in which concurrency is a first-class citizen. Supposedly, the combination of the Casper Protocol and Rholang language mitigate most of the issues with the PoS. I have no idea why so little people even know about this project...
So basically, Ethereum wants to make it impossible for new people to enter into the crypto-mining industry who wouldn't have a steak yet.
Yep sound crazy? Because it is. Ask myself why we didn’t start doing it directly. Hmmm
Thanks for the video, I didn't know PoS had flaws,
pos wont be as good as a store of value. pos smart contracts should be viewed as workhorses and pow coins as the expensive race horses.
pos isnt as secure as pow.
I think you may be a little misinformed on Chia. Chia is mining isn't actually done on the ssd. That is called plotting. The process most closely resembling mining is called farming. And all that farming includes is storing those plots created on the ssd with a CPU on some slow hard drive. The idea is you create your plots, and maybe burn through an SSD, but then you have those plots forever and can "mine" them without consuming much electricity at all. A farmer can easily be ran on a rasperry pi and an HDD dock.
If you go back he did say that the ssd is what does the plotting.
With the long range attack... the assumption is based on if the pos chain has probalistic consensus like bitcoin. The top pos crypto have deterministic consensus. So the longest chain dilemma doesn't exist as blocks are finalised and new blocks build on only that finalised block. Check out casper finality gadget on eth 2.0 and also Polkadot's BABE GRANDPA and AURA.
definitely saving this to use as ammunition in internet arguments
Right now it's in a gold rush phase, but Chia could stop producing waste if the netspace grows so much that it's not worth buying a hard drive specifically to farm it
the real problem is that this system is going to end up being centralized because stacking on an exchange is way easier and is less risky then stacking on your own system, also an other problem is that it costs too much to make your own node so most people will use an exchange witch again makes it more centralized. My second problem is that stacking is more expensive and has a higher commitment then to mining with a GPU, anyone that already has a GPU can do it they just need to download nicehash, but with stacking you need to invest a lot of money and time and use an exchange. My third problem is that is most of the stacking is going on in one place, like coinbase the gov will be able to regulate the crypto market way more easily.
Lol yeah so you keep the centralized scam alive and also complain about it ? Why would you even stack on a exchange (it has risks) when you mostly have dedicated stacking pools on chain (free to join). You need to participate in the community / network(+ understand it) to make the decentralized model work. It's so weird to me people don't want to understand their investment, only "all" the "value" advantages, no responsibility, and the services of a bank ...???
Isn't it why we have Dex( decentralized exchange) ? Genuinely asking.
Great video. As always.
Btw, I've seen some people talking about a new cryptocurrency called Helium, can you make a video about it and your thoughts?
glad to see such open minded point of vue from mental outlaw after seeing the video about the problem with chiaa
Maybe I'm misunderstanding the long range attack but Algorand is designed so that it won't fork. Does that mean it's immune to the long range attack? I would also disagree with saying staking is complex, maybe on some blockchains. Algorand for example requires nothing, once the money is in your wallet you'll start earning. These are some of the reasons why Algorand interests me.
Great video
You should check Casperlabs PoS. More advanced than any other mentioned here.
I like PoS but PoW makes me feel the network is more secure.
Secure, aka controllable by the plebs.
This is a good thing.
PoW is the most efficient mechanism in the history of our species for converting energy into security. PoS has been around for thousands of years, it's a non-starter because you can't out-hash a bad actor, you have to convince existing stake holders to let you in.
Could you explain this further?
A bad actor would require a large amount of investment in that system they are trying to destroy. It’s counter-productive and why PoS isn’t prone to that example
@@shakespear7675 The adversary produces currency at no cost.
8:10, people be ignoring that a crypto mining rig is hella expensive I guess... This is true for any investing, the more money you have, the more money you can make
Last time I checked the blockchain is not an investment product but the essential arteries of our future economy. Why do t we just get rid of gold and agree on paper to exchange and store value? Hasn’t worked as good last time hasn’t it?
Can you talk about Cardano? I don’t know what all the fuss is about
Afaik it's a bit like ETH, but starting from scratch and hopefully avoiding many pitfalls. Also they have more recent model behind it and apparently they focus first on correctness and then on accessibility
Disclaimer: I may be a bit biased because I _really_ like Haskell and it seems they are using it for their core infrastructure
It’s ethereum 2.0 with pos, cheaper fees, and quicker transaction. Plus they are about to release smart contract this summer whereas ethereum is still waiting
Its basically a "ethereum kill" as gm is a "tesla killer", in other words just another shitcoin
Thanks guys, it seems interesting. Will do more DD myself now
It's a woke version of ethereum basically
Nice explanation!
Long range attacks are complete deal breaker for a global monetary system as it has to be secure. They can not be solved because they are essentially double spending problem again. At best one could anchor PoS coin into Bitcoin. Not sure if it's useful though.
As always great stuff MO, thx for pointing out some real environment probs beyond CryptoMining...
I think as of today cpu mining asics resistant may have a resurgence (see the raptoreum craze) . There are many others similar to monero as in private but more or less mineable by everyday folks. Haven, Evox, Cpu Chain, Lethean etc
I like how Mental Outlaw's videos are technically accurate and attempt to explain detail to the average human being.
Cant remember but have you done a video on Monero ? if not can you :) I wouldn't mind hearing your opinion on it.
yup, go to his channel -> videos -> search for 'Monero'
Wouldn’t this have e waste issues to because of all the read and writes on the ssds? I’m not sure what the typical limit is on an ssd or how many proof of stake requires.
etherium moves to the new model and all of those graphics cards go back to the market
Miners are like 10% of the problem, stop crying
@@user-mx4vd4ow2e exactly
it won't matter cuase the graphics cards will just mine other coins
@@user-mx4vd4ow2e miner spotted
@@user-mx4vd4ow2e Before scalpers, they were a problem. SSD's and HDD's are becoming more expensive and hard to find because of Chia, this can't be the first thing something like this has happened. Now it's mostly scalpers, and stock shortages, although miners aren't helping.
What's your opinion on Decred POW & POS?
You should make a video on facebook's vr investment, and the weird stuff in their privacy policy.. also the zuck complaining about how the investment hasn't paid off is pretty funny
Mmm i have a question , lets say ripple since it's PoS does that mean you can just "create" forge ripples for ever ? That it doesn't have a finite number of coins like Bitcoin (despite when last Bitcoin is gonna be minned) ?
Video on IOTA and Stellar Consensus?
0:50 in Costa Rica your electricity comes from hydroelectric plants, I think it is cheaper to mine here than anywhere else (except for, maybe, El Salvador)
Dang dude thank you
Proof of Work gets a bit too slagged off in this video. By its very nature, PoW incentivizes cheap, renewable electricity. In the long term, it will be cheaper to use solar, wind, hydro, and geothermal power than burning an exhaustible resource. The "Digital" security problem is not negligible, as the entire point of crypto is to have a monetary system that cannot be manipulated. With Proof of Stake, that value is lost, and we may as well to back to fiat.
Except renewables are cheap without subsidies. China can burn all of Mongolia coal while you’re hoping for sunlight
@@garyoakham9723 The price of renewables are going down every year. Proof of Work directly incentivizes this development.
POW is more secure because you need to invest into specialized machines which you cannot liquidate quickly, you are bound to securing the network, where as in POS it's much easier to transfer your digital value into any form.
The rich getting richer isnt a problem that I'm concerned about. But what I do have concerns about is wealthy people 51% attacking a proof of stake blockchain simply because they have enough money to stake 101% of the current staked tokens.
So where PoW is non trivial to attack and requires a lot of physical infrastructure and equipment and staff...
51% attacking a PoS is basically just a temporary financial investment, trivial to do... Meaning PoS has no security against wealthy adversaries... Unless I've missed something?
You are correct. This is what is happening to fiat currencies right now - the extremely wealthy have bought their way into the system and are manipulating it to their advantage. PoS will be no different.
This is why there is currently such a big attack on PoW. Those that benefit from the fiat system are realising the writing is on the wall for them if a PoW currency like BTC becomes the world standard. Hence this latest enviro-*mentalist* FUD being pushed by the vested interests.
@@MrEdrftgyuji Proof of takeover by money printer that goes Brrr
This seemed so immediately obvious to me. I thought surely I'm missing something. Cos if this is the case then how can people be so dumb? I mean they're basically destroying rhe security model created by Satoshi and replacing it with a house of cards.
@@joshuamaserow because most are uneducated sheep that repeat what they heard. Proof of stake is probably the choice for every future state issued coin. Should let people think.
wondering if a combination of the 2 would work.
like have every other block be mined or something like that.
then it don't really matter how fast you can mine blocks because you have to wait for the stack blocks.
and the mined blocks will make copying slightly more difficult.
What do you think will happen now that chia is on the market?
Enthusiasm for proof of stake will continue to go down. Chia is dead to it's target demographic already, partly due to bad design choices and partly due to inherent flaws with PoS (notice those letters, yes, I know you did).
If good products succeed and bad ones fail it's gonna go down the shithole quick. But bad products don't always go down the bog quickly and good ones don't always end up winning so who knows
How about "Secure Proof of Stake"? Is batter??? (Eg. Elrond's)
How much electricity does a Tesla take or a normal bank transaction?
Great video, i've just submitted my dissertation on the environmental impact of Proof-of-Work. I found alot of people in the crypto space don't even realise the impact it has or even what Proof-of-Stake or Proof-of-Work is. We need more videos like this to spread awareness.
Not much awareness to find. Chia is totally misrepresented. But if u made a dissertation on it then u probably now that.
What about proof of transfer like on the Stacks chain?
Nice
Make a video about lightning network.
Never going to trust a proof of stake model.
Would it be possible to have a crypto network where participating machines offer a giant cloud service by making system resources available?
I still don't get it.
With PoW you try to generate a hash to confirm the validity of transactions.
With PoS you 'invest' into a node and .... profit?
is that graph of countries' coal consumption not extremely misleading due to the fact that a lot of the "consumption" in China is actually consumption in America of production in China?
Ackchyually, you don't use POW to verify transactions. You use it to choose who is allowed to add the next block on the chain. Verifying the transactions is computationally trivial. Seriously though.
This. Block validation is controlled by the nodes, which is extremely accessible to plebs like me.
POS died with the hole Steem vs Hive BS. Bunch of forking cowboys 👍. Love your vids man.
Cant believe you didn't talk about decentralization for PoW vs PoS.
Otherwise great video.
Pools have already focked up the whole decentralisation thing
@@purplep3466 At least with PoW you can switch to another one immediately. Not quite with staking pools.
@@purplep3466 It's actually the complete opposite. Without mining pools only large entities could afford to mine, as the payout variation would make it impossible for smaller players to enter the field, leading to centralization. With pools, mining becomes potentially viable even for individuals (as long as their electricity bill is cheap enough or they produce an energy surplus). The potential for mining pools themselves to use their power to harm the network in any way is only theoretical, as miners can instantly switch to a different pool the moment that happens. In the past, miners have even been switching simply because their pool was getting too powerful in terms of hashrate share.
The problem with PoW is that by its very construction it requires a substantial part of resources to be dedicated to it.
So if you decrease the power consumption | hardware requirements, you get a less safe network no matter what
Not true. Chia solved this I think 1/20 of Bitcoin . And it solves e waste. The video here is totally misleading about chia.
@@janmaker227 What do you mean? Does Chia not require expending resources to operate?
My point was that if the rule is 'the amount of blocks assigned to someone is directly proportional to what they spend on mining' then unless mining consumes a significant fraction of world's resources, some major player (e.g. a government) can easily devote more resources and conduct a 51%
@@mskiptr it does require resources but in theory farming could be done one every smartphone in the world. Just look how many people have filled there 64/128 or even 512 gib of storage on their mobile devices. We could use these and the lookups will not burn the battery. So imagine you would have two values you available storage and the free storage is actually used temporary as farmer/miner. The concept of proof of space & time (the time is just there to make proof of space work) but it’s actually proof of space. And what’s so interesting is that storage is available and all the iPhones in the world can hold an enormous amount. Yes to farm/mine in chia first you need to generate the plots … put it’s a one time process and actually can not be compared to constant heavy load on a gpu. It also doesent burn SSDs. This whole SSD killer was a big topic when people started. Today nobody cares if he does 50plots a day or 10plots. So no it doesent need more and more modern storage. Although it will trickle down into storage utilization und innovation - but that’s regarding enhancing lifetime and reliability. Nobody needs speed in chia and that what makes it so scalable. People are farming on raspberry pi. A modern smartphone is probably 10times more powerful . When it comes to security it makes no compromise to for example Bitcoin.
When chaos comes, a wise man does what he has to do.
If you freeze water you get ice
proof of wealth... the problem is so many stakers don't even know what they're voting on half the time
nice shoutout to der8aur
does proof of stake use hashing?
A lot of bitcoin mining energy is renewable already, even in china. they are using hydropower and quite frequently run off power from the grid as it is cheaper
@@capybara6807 perhaps the price of security is worth it. besides that, personally the biggest issue I have with proof of stake is that stakers can dump all their coins instantly if they so choose, where as miners have some level of investment into it, giving more stability
"Quite frequently run off power from the grid as it's cheaper".
Yes. And the grid is using coal. So you just inadvertently admitted they don't use renewables because coal is cheaper.
Also horray for decentralization if all mining is done in china
@@tfwmemedumpster He is talking about surplus energy generation. That energy would just go to waste.
@@capybara6807 With ASIC miners and the dedicated cards NVIDIA is making, yes. Otherwise, there is a used market for GPUs (especially in the last year with the shortages), the PC's they were built around, and more. Of course, it's still bad for the earth for little reason (unlike folding@home and similar which actually use users' compute power to benefit science and other fields).
That power could be used for other things so less coal energy would have to be produced.
Rich people can also buy miners for crypto currency. So it's the same as proof of work really. It's just how the money is spent.
Stake Cardano. Make money. Improve humanity. This is the way.
Regarding your counter argument on how PoS is a rich man's game, that's a fallacy, just because a trend is observed, does not mean it is impossible to go against it. That is to say, it's not impossible for average people to earn money with PoW - just buy a GPU and become a member of a pool. The pool itself acts as a mechanism which prevents the best of the best from running away with 100% of the profits.
In PoS, however, there are no pools, and the bar of entry is prohibitively expensive. You'd need a UPS to ensure the power never goes out, a business grade ISP subscription to make sure the internet never disconnects, as well as ISP that employs passive fibre all the way from their servers, to ensure there is no downtime during blackouts.
On top of that, it will most certainly not just magically cut down all energy consumption and turn all fossil fuel powered nations into clean, environmentally conscious countries. Besides, even if China went 100% renewable overnight and stopped consuming coal altogether, the rest of western nations are still powered through fossil fuels, be that coal or gas. Only renewable countries to think of are in Fenno-Scandia and southern Africa, as many are staring to use the available solar power, and some are already. South Africa (the country), for instance uses a lot of photovoltaics and solar thermal power. Many residential homes in South Africa are turning to solar power as a result of lacking power infrastructure and supply in their respective areas. (Archived citation used by Wikipedia from the International Energy Agency: www.webcitation.org/6XPpb1fai?url=www.iea-pvps.org/index.php?id=92&eID=dam_frontend_push&docID=2430 )
Edit: Wanted to add that the UK's move to turn coal power plants into biofuel power plants is sustainable as per the definition (as long as you define humans as renewable, as the waste is produced by humans and their supply chains). However, it is not eco-friendly in the slightest, although better than letting it rot in a landfill, as that produces methane and other gasses, which have a worse impact per cubic litre of it emitted.
People exaggerate the power consumption of mining. Sure, it consumes more energy than the country of Ghana, but that's a very low value. Imagine if you calculated all the power bills of every single financial institution in the entire planet. A bunch of GPUs in a warehouse is probably not too far off from a single agency of a bank in terms of wasted electricity, not to mention manpower which implies even more electricity.
That said, Ethereum was a semi-good model as it was. GPU production would just ramp up with time and we'd have tons of cheap GPUs down the line (even if things suck now).
Commenting for the algorithm ⚡
Pow is like mining gold, pos is like printing dollar notes. Do we use gold nuggets to pay in the restaurant?
We effectively did until Nixon was elected. And i'm not sure moving off the gold standard was so good. 25% of dollars were created in 2020. Can't do that with a gold standard
@@tfwmemedumpster you can archive the gold standard with pos. There is not need for mining
Gold has held its value for 1000s of years.
Dollars are fast becoming worthless.
@@MrEdrftgyuji Even more than 1000 years. So?
Hm, i, really, don't know about proof of stake nor proof of work. SINCE i don't really work
based
imo PoS is the worst thing that could happen for a crypto coin.. if you put things in perspective mining is using less than what all banks uses.
Proof of stake = GPUs become affordable again, because you don't use them
Unfortunately people will always hold some preference towards Proof of Work based currencies even though Proof of Stake is for the most part superior.
I personally think they make a lot of sense for Privacy coins for example. CPU & GPU mining won't go away entirely.
@@dastardlygames8218 Id disagree, POS is often times a rich get richer type of setup and it also relies on bad actors acting logically. Whats stopping a large bank or gov from creating chaos by staking a lot of coin and then doing bad things regardless of loss, just to kill trust in the coin? With POW even if they wanted to do such a thing, it would take a lot more effort and resources to pull a stunt like that.
@@jondoe6608 They'd have to acquire or control atleast 33% of the supply with most Blockchains that implement use PoS for Sybil deterrence to cause any serious issues or safety violations. Good luck with that.
If that is possible then the distribution of coins wasn't thought through enough when the blockchain was created (pretty easy to figure out).
@@jondoe6608 well the government could also just say "selling, owning and trading crypto is now illegal, anyone found in possession of the aforementioned will go to jail for 10 years". No need to own coins. Just throw people in jail for owning them and the value goes to zero
@@tfwmemedumpster How well did Americas War On Drugs work out? Trust me you dont want to start a War on Cryptocurrencies.
You made a mistake in the minute 10:40 , the "51% attack" in proof-of-stake is not 51% needs to be 67%. Then it's technically safer.
Depending on the implementation it varies from 33% to somewhere-over-50-but-nobody-knows-exactly-how-much-unless-we-tried
So proof of stake is more centralized than proof of work...
Well shit...
Even then, if most of the miners are in one region, or there's giant farms of thousands of devices working for a few people, isn't that centralized?
@@alext3811 no it’s not! From a systems perspective it’s far more decentralized. It’s like saying there are only a few very Profitable gold mines in the world. It still works. U are throwing out the kid with the bath water .
Proof of stake sounds mega inflationary and super speculative
Aaaand buying ton of GPU-s for proof of work seems expensive too and richer you are the more you can afford.
How do you get penalized? The problem is how do you know some node is lying? If N nodes are all liars, M nodes are honest. How does other nodes know who is the real liar?
DejaVu
1:14 “The real problem is how this electricity is produced.”
Shows a Tokamak Fusion reactor 😂
Console or Video Game ASIC
called the mid 2021 crash again, wow
Anything is better than centralized exchange scams IMO
cons:
0 coin (u cant get first coin if u dont have anything)
buy coin
@@wacesferpit i think what meant is how do you generate the first coin? It will either need to be manually assigned or mined with pow
@@tfwmemedumpster generally a set amount is pregenerated and sitributed
@@tfwmemedumpster mayne when the crypto is created the creator stakes 0 and wins because nobody else is mining it
the problem is not that rich people making more money than poor people the problem is that as time goes on the network inevitably falls into centralization with a proof of steak system.
Those are digital problems yes, but if my money become digital then those problems become my problems.
One of the issues with proof of stake is an attacker can just print money and stake their free money without losing anything.
Well theoretically you could also try to spend your money twice or more in pow. How effective the attacks are depend on how decentralized the system is. More centralized=more effective
@@tfwmemedumpster PoW involves actual physics in the real world, it's not just manipulating numbers; you can't produce energy out of nothing, there's no equivalent to money printing in PoW.
Proof of Stake = fiat
Proof of Work = gold
If a Bitcoin miner get enough power we know it but if a PoS get enough we dont know it because he could split it to many adresses...
Bitcoiin miner have the risk to lose the Miner...
not sure if you read the comments from old videos where i commented this too, but heres a video you should watch concerning chia: th-cam.com/video/twwyBdsRYL4/w-d-xo.html
edit: well nevermind 3:46
Cypto is cool, but it's a shame how far we have to go just to be able to securely trade. And despite our best efforts, sunken costs, environmental degradation and inconveniences, we still fall short of having a sound medium of exchange
Don't worry. Bitcoin is far more green than the existent obsolete banking system. Of cojrse ir consumes a lot, but it is energy very well used!
@@Antonio-nn5ot a single bitcoin transaction uses the same kWh of electricity as 1.3 million Visa transactions
@@IllllIIllllI no
@@Antonio-nn5ot what do you mean? It is a fact
If rich men getting richer was never an issue I fail to see why coins needed to become ASIC resistant outside of minor environmental concerns.
Maintaining the "1 processor = 1 vote" mentality.
ill take secure over energy consumption any day
If he is to look at how BSV (real Bitcoin) works most of the flaws (if not all of them) would not exist.