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Why The “Rich Get Richer” Argument Against Proof of Stake is Fundamentally Flawed : ethereum

by BNP
August 10, 2021
in Ethereum News
0
Why The “Rich Get Richer” Argument Against Proof of Stake is Fundamentally Flawed : ethereum
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For the wealthy to get proportionally richer, they should have extra percents of earnings than you, not simply in absolute values. As quickly as they get much less in share, they lose some energy over the chain, which implies they don’t seem to be an issue.

To personal and stake 51% of the ETH and utterly management the block contents, they’d want to just accept a staking reward of lower than 3% per yr. It is actually low. And even then, their solely energy can be to censor transactions (some other invalid block would let some other staker show the invalidity to slash their stake as a punishment, rewarding the slasher).

Utilizing this censoring energy would urge different individuals to fork the chain with out the tokens of the 51% attacker, with the intention to clear up the censoring downside, which might consequence within the lack of all cash for the 51% attacker. Fairly a loss.

You possibly can’t have this sort of deterrent in PoW, since miners maintain their mining tools no matter you do. At finest, with PoW, you possibly can skew your mining downside to make it extra complicated for the particular mining tools of the malevolent miner, nevertheless it’s not a given this tools is totally different sufficient from the remainder of the miners.



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