45 votes
Accepted

Why doesn't Bitcoin migrate to proof-of-stake?

Proof of Stake is basically a case of having your cake and eating it, too. PoW is a simple work-around to a coordination problem that was previously thought to be unsolvable. It sort of "cheats&...
user avatar
  • 63.4k
21 votes

Why doesn't Bitcoin migrate to proof-of-stake?

I think there are at least four reasons: The miners are stakeholders in the bitcoin ecosystem. Mining solves a problem for them. Taking away PoW mining would make bitcoin no longer work for one of ...
user avatar
17 votes
Accepted

What are the downsides of proof of stake?

Vanilla proof-of-stake doesn't achieve consensus, unfortunately. People staking their coin can vote for both forks of the blockchain, and can even mine effortlessly in secret. In PoW this is ...
user avatar
15 votes
Accepted

How is a proof-of-stake block mined at the block level, and how does it accomplish it's goals?

Proof-of-stake mining is similar to Proof-of-work at a technical level. It involves a sort of lottery, similar to proof-of-work, but the difficult of this lottery is weighted depending on how many ...
user avatar
  • 1,110
14 votes

Why doesn't Bitcoin migrate to proof-of-stake?

I think there are some very convincing theoretical arguments to be made, but there is also just a very practical consideration: Right now, a very large portion of BTC is being held in the cold ...
user avatar
  • 17.3k
10 votes

What other whitepapers are there for coin distribution models like POW (proof of work) and POS (proof of stake)?

I don't know of any such list yet, but no reason we can't start making one. :) Others should feel free to add their findings via an edit. Proof of Work Proof of Stake Proof of Activity Proof of ...
user avatar
  • 13.7k
8 votes
Accepted

What's the difference between PoW and PoS?

The following points try to simplify/abstract: A cryptocurrency has its own blockchain to store all the transactions that occurred. A proof of work/stake algorithm are different methods (or ...
user avatar
  • 2,204
8 votes
Accepted

Is the Lightning network a proof-of-stake system?

Calling the Lightning Network (LN) a Proof-of-Stake (PoS) system is orthogonal to the concept usually labeled as PoS. What we usually describe as PoS is a mechanism to achieve distributed consensus ...
user avatar
  • 63.4k
7 votes

What are the downsides of proof of stake?

Proof of stake has been used for many months in Nxt, and has not been broken despite having the third highest market capitalisation, so it does seem to be secure. If it wasn't, someone would have ...
user avatar
  • 275
7 votes
Accepted

How does Proof of Burn work?

Attention: Ambiguity! Note that the term (or abbreviation) "PoB" can be used differently. For example, some cryptocurrencies allow users to get some of their coins for provably burning money in ...
user avatar
  • 3,154
6 votes
Accepted

How does a miner get selected in Proof Of Stake?

The minting algorithm for staking is different for various coins; for example, it is different in BlackCoin from Cardano. There are several approaches to staking, but most of them are susceptible to "...
user avatar
  • 992
6 votes
Accepted

In what sense does the security model of proof-of-stake require users to "log on to the internet every few months"

What Vitalik is talking about is the Slasher algorithm that he designed which punishes the block signer if he attempts to create a fork in the blockchain. However the way that slasher works is that ...
user avatar
  • 61.4k
6 votes

Has PoS really been proven secure under comparable assumptions as Bitcoin?

The Ouroboros line of work proves security comparable to Bitcoin's security. The proofs of security in Ouroboros are similar in style to the Backbone proofs of security, which show that Bitcoin is ...
user avatar
  • 992
5 votes
Accepted

Do you receive interest on Peercoin if you use an online wallet?

If it is a web wallet that holds your private keys, then it is certainly possible that the service is staking your coins for you, but this may or may not be a feature that the developers of the ...
user avatar
  • 13.7k
5 votes
Accepted

What is stopping someone from creating their own "chain" in Proof-of-Stake systems?

This problem is generally known as "nothing at stake" or "costless simulation", where there is indeed nothing preventing anybody from making arbitrarily long chains where they are the only ...
user avatar
  • 15k
5 votes
Accepted

Can someone explain the pitfalls of NXT Proof of Stake's potential issue of "nothing at stake"?

Essentially, PoS' nothing at stake problem is that you don't lose anything by mining. In Bitcoin, you lose the money you spent on energy to power your miners. Thus, in bitcoin mining you want to make ...
user avatar
  • 13.7k
5 votes
Accepted

How do I join the NXT 2.0 (Ardor) distribution if it isn't an ICO? And how does it affect NXT 1.0 holders?

The Ardor launch will happen in 2017, but the distribution of the main ARDR tokens will be based on the Nxt 1.0 balances. And yes, as far as I know it is the first scalable blockchain platform using ...
user avatar
  • 66
5 votes
Accepted

What does one need to do to earn Decred through PoS?

Decred has a hybrid Proof-of-Work/Proof-of-Stake model, which means that block rewards are shared between the miners and the stakers (and the developers), with PoW mining earning the larger portion of ...
user avatar
5 votes
Accepted

Why do we need to chain the blocks (creating blockchain) in a permissioned blockchain?

I think you might already know the answer, based on your question. The "chain of blocks" has value in Bitcoin because of the proof of work. It is also provides a data structure that can be used in an ...
user avatar
  • 7,060
5 votes

How much more energy efficient is PoS (proof of stake) than PoW (proof of work)? Are there any figures on this?

When providing an equivalent amount of security, I don't believe PoS can be more efficient than PoW. I do understand how it may appear this way on the surface, but I think deeper consideration shows ...
user avatar
  • 17.3k
4 votes
Accepted

What are some counter arguments for NXT (nxtcoin) "premine" or initial distribution setup?

Arguments of Nxt creator are written here - https://nxtforum.org/initial-distribution/initial-distribution-of-100-pos-currencies/: Initial distribution of the coins and the forging schedule are ...
user avatar
4 votes

How does Peercoin (or other PoS) prevent timestamp forging effecting hash attempts or random minting?

The general problems you are describing are inherent flaws in PoS, but you've caught onto some of the basic principles that are going to impact the security and integrity of the cryptosystem. ...
user avatar
  • 15k
4 votes
Accepted

Is Ethereum essentially Bitcoin with Turing-complete Script?

Is Ethereum essentially Bitcoin with a Turing-complete scripting language and, if I understand correctly, where the script to be executed (not its hash) is placed in the Ethereum blockchain? That's a ...
user avatar
  • 28.7k
4 votes
Accepted

In Proof-of-Stake, can the same miner mine a block multiple times in a row?

Can the same miner / address / person be chosen to create multiple blocks in a row Yes, a single entity can mine multiple blocks in a row with no ill effect. are there some mechanisms preventing [...
user avatar
  • 15k
4 votes

How is a proof-of-stake block mined at the block level, and how does it accomplish it's goals?

Here are some closely related observations on the topic that might help other newbies like me to understand PoS. I spend a couple of hours trying to put things together and to be honest coming from ...
user avatar
3 votes
Accepted

In Proof-of-Stake, can a block creator fudge the block hash?

Absolutely. ECDSA signatures at not unique, they can always be permuted by the signer at will by re-signing with a new nonce. The creator of the block can also choose to reorder or omit transactions ...
user avatar
  • 15k
3 votes

Why is POW/POS absolutely necessary to run public distributed ledger?

You can't do this due to the Sybil Problem. There is no way of proving a node is an individual participant in the system, you can't prove that a node existed at any point in time (or didn't), and ...
user avatar
  • 15k
3 votes

How can I generate more coins while mining on PoS?

Yes, you have to have client with all your coins open with your private keys and have it sitting on online machine. See Proof Of Stake Details section for NXT
user avatar
3 votes
Accepted

Minimum how much bitcoin may I get per week if I stake 0.05BTC?

Bitcoin uses pure PoW (proof of work) mining, so you can't really "stake" your 0.05BTC. The only thing that will determine how much bitcoin you may get, will be your computing power, measured in ...
user avatar
  • 401

Only top scored, non community-wiki answers of a minimum length are eligible