• red_tomato@lemmy.world
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    1 day ago

    Proof of Stake and Proof of Work are two different ways of electing who should append the blockchain with new transactions.

    Proof of Work: the one who can waste most energy fastest is most likely to be elected.

    Proof of Stake: the one with most money is most likely to be elected.

    It’s a bit oversimplified, but that’s the general idea.

    • Knock_Knock_Lemmy_In@lemmy.world
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      23 hours ago

      Proof of Stake: the one with most money is most likely to be elected.

      This is misleading. Winning the validation election doesn’t give you more power.

      The one who is most dishonest gets their stake burned.

      • lad@programming.dev
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        2 hours ago

        How is that misleading, they said nothing about power or being dishonest?

        Also, proof of stake sounds like rich get richer scheme (but that was already true for proof of work for a long time)

        • Knock_Knock_Lemmy_In@lemmy.world
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          2 hours ago

          How is that misleading

          The word elected implies power. Having more money staked doesn’t give you any more abilities over a capital poor user.

          proof of stake sounds like rich get richer scheme

          Like all capitalism. An interest bearing bank account is a rich get richer scheme.

          In PoS you do still have to do a bit of work for your money (hardware, power, network connection, verification).