Re: [bitcoin-dev] Opinion on proof of stake in future

[Eric Martindale <eric@ericmartindale.com>]

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Mr. Singh,

Proof of Stake is only resilient to ⅓ of the network demonstrating a
Byzantine Fault, whilst Proof of Work is resilient up to the ½ threshold.
You can explore prior research here:
https://download.wpsoftware.net/bitcoin/pos.pdf

Independent of the security thresholds, Proof of Stake requires other
trade-offs which are incompatible with Bitcoin's objective (to be a
trustless digital cash) — specifically the famous "security vs. liveness"
guarantee.  Digital cash is not useful if it must be globally halted to
ensure its security, and Proof of Work squarely addresses this concern.

Above and beyond any security consideration, Proof of Stake incentivizes
the accumulation of wealth within a small set of actors, which is
undesirable for the long-term health of any such network.  If we are to
free humanity from the tyranny of the State, we must do so by protecting
the rights of every individual to hold and preserve their own value,
without trusting any third party.  Entrusting the health of the network to
the "economic elite" is the paramount evil with respect to Bitcoin's
objectives, nevermind that Proof of Work relies on energy expenditure to
provide its security.

Sincerely,

Eric Martindale, relentless maker.
Founder & CEO, Fabric, Inc. <https://fabric.fm>
+1 (919) 374-2020


On Fri, May 7, 2021 at 6:50 PM SatoshiSingh via bitcoin-dev <
bitcoin-dev@lists.linuxfoundation.org> wrote:

> Hello list,
>
> I am a lurker here and like many of you I worry about the energy usage of
> bitcoin mining. I understand a lot mining happens with renewable resources
> but the impact is still high.
>
> I want to get your opinion on implementing proof of stake for bitcoin
> mining in future. For now, proof of stake is still untested and not battle
> tested like proof of work. Though someday it will be.
>
> In the following years we'll be seeing proof of stake being implemented.
> Smaller networks can test PoS which is a luxury bitcoin can't afford.
> Here's how I see this the possibilities:
>
> 1 - Proof of stake isn't a good enough security mechanism
> 2 - Proof of state is a good security mechanism and works as intended
>
> IF PoS turns out to be good after battle testing, would you consider
> implementing it for Bitcoin? I understand this would invoke a lot of
> controversies and a hard fork that no one likes. But its important enough
> to consider a hard fork. What are your opinions provided PoS does work?
>
> Love from India.
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> bitcoin-dev@lists.linuxfoundation.org
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>

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