Episode notes
"If Bitcoin were built on a proof-of-stake model, where the more coins you have the more votes you have on how the network functions, the large exchanges and custodians could have used the millions of coins they held on behalf of clients to vote in their own favor. This is similar to how Vanguard and BlackRock hold trillions of dollars of indexed equity assets for their users and maintain the voting rights on those assets." - Lyn Alden
Man have we got a great one today! From Lyn Alden we have part 2 of her breakdown of the systems of proof of stake, versus proof of work, and why they are fundamentally different, and the challenges and trade offs of proof of stake. Why it is inherently centralizing, and what issues arise in contentious changes to the network. We will jump into Part 2 tomorrow, with more on how stablecoins make this problem even worse. Don't miss it!
For some more reading into the concept behind Proof of stake and why its a very different (and wrong) design philosophy, dont miss Huge's great pieces:
Proof of Stake & The Wrong Engineering Mindset: https://bitcoinaudible.com/proof-of-stake-the-wrong-engineering-mindset-hugo-nguyen/
Proof of stake & Unforgeable Costliness: https://bitcoinaudible.com/proof-of-stake-private-keys-attacks-unforgeable-costliness-hugo-nguyen/
Anatomy of Proof of Work: https://bitcoinaudible.com/anatomy-of-proof-of-work-part-1/
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