HACKER Q&A
📣 TekMol

Is there a fork of Bitcoin that uses Proof of Stake?


Over the last days, I have been looking for arguments against Proof of Stake. I was kinda surprised I could not find any of substance.

The biggest I found is that PoS is more complex and less tested.

Is there already a fork of Bitcoin that used PoS? I would like to see how it does.


  👤 karmakurtisaani Accepted Answer ✓
One argument I can think of is that PoS gives the power over the currency to the wealthiest users. On the other hand, any financial system is controlled pretty much by the wealthiest, even (and especially) Bitcoin, as you can buy more computing power with your wealth. Not to mention pump and dump schemes you have access to with more wealth.

So yea, PoS is the way to go, at least wrecking the environment is not incentivized as much.


👤 frozencell
There are quite a few arguments against Proof of Stake, some of the most important are:

- PoS is more complex than PoW. This means that it is more likely to have security vulnerabilities that have not been discovered yet. - PoS gives an unfair advantage to early adopters, the wealthiest users. Those who have a lot of coins will have a much higher chance of validating blocks than those who have few coins. This likely lead to centralization of the network. - PoS is less secure than PoW. In a 51% attack [0], a malicious actor would need to control more than half of the coins in order to have a chance of validating more than half of the blocks. This is much harder to do than in a PoW system, where a malicious actor would only need to control more than half of the mining power. - PoS could lead to inflation; if the price of the coin goes up, then those who have a lot of coins will be able to validate more blocks and earn more coins and could cause inflation if not properly managed.

Maybe the most important argument against it is that proof of stake requires users to have a certain amount of money staked in the network in order to validate transactions. This could lead to centralization if only a small group of people have enough money to participate in the validation process. Second, proof of stake coins typically require users to keep their coins locked up for a period of time in order to earn rewards. This could also lead to centralization as it would be difficult for new users to join the network and earn rewards.

The problem with Peercoin for example, a fork of Bitcoin using PoS, is that it relies on checkpoints - the blockchain blocks that have been verified by the network's nodes and agreed upon as the most recent correct blocks. So it's quite centralized.

[0] https://dci.mit.edu/51-attacks


👤 Vladimof
One argument against PoS could be that whales are at an advantage... but yeah there are some proof of stake coins....