Post
Topic
Board Bitcoin Discussion
Re: "Failure to Understand Bitcoin Could Cost Investors Billions" (Bitcoin's flaws)
by
AnonyMint
on 13/02/2014, 05:48:00 UTC
I have already explained upthread that Proof-of-Stake is not secure because essentially you must trust those with the largest stake (and it can't distribute new coin out to the people through mining in a competitive manner).

It seems to me that the creator of Nxt fixed PoS by adding Transparent Mining. He also invented another "mining" algo that doesn't use "coin-days".

You see they tried to solve it by invoking trust and reputation "knowing who all the miners are", but I already explained upthread that is just another low entropy (i.e. low security) result:

I strongly posit proof-of-stake will be proven insecure. It lacks the expanding entropy of proof-of-work.

Trust via reputation (i.e. social capital) or stake (i.e. capital share) inherently degrades to centralization and low entropy outcomes.

Only Satoshi's Proof-of-Work can solve the entropy security issue and remain decentralized. Period. I have thought about this deeply.