|
Title: PoS -- Is it really that good? Post by: dE_logics on December 05, 2013, 03:54:07 PM I'm genuinely trying to think about this, and based on it, I may buy PoS coins.
ALERT -- THIS'S NOT MY FINAL OPINION; I'M TRYING TO GET TO A CONCLUSION BY DISCUSSING IT WITH THE COMMUNITY. This post will be updated based upon my findings. Cryptocurrencies are not commodities. It's designed to be spent and a medium to receive payments from. If a cryptocurrency is not that, it's basically a pump and dump scheme. Actually if you see for a fair cryptocurrency which is not seen as an investment, there should be a little bit inflation, cause that way people will not hold on to it like investment; instead they'll use it to buy investments like shares and gold -- which is something to be seen as an investment. Proof of stake is not good for a cryptocurrency. Arguments -- It encourages holding the coins as investment, avoiding it's circulation, i.e. true use as a cryptocurrency. However if the profits proof of stake is giving you is negligible, then we may nullify this disadvantage. Then you need to run a full node in order for the wallet to mine blocks based on PoS and it should be up always; how many people will do that? (especially when the interest rate is low)? When these coins will be made popular, 90% people will run paper wallets giving power to the hands of these 10%; thus an attack may not be that hard to do. The block mined by a PoS may not have all the transactions -- What guarantees do you take that the person holding a large amount of coins and running a full node, keeping his wallet up and who has just generated a block has a good Internet connection so as to receive all the broadcasted transactions and include it in the block? These people are not experts, they've common stuff like firewall, anti-virus which may be up blocking the incoming transactions. This's unlike miners who usually have a good Internet connection and technical understanding. Title: Re: PoS -- Is it really that good? Post by: opticalcarrier on December 05, 2013, 04:09:39 PM maybe PoS for a regular 1st generation coin would have the issues you touched on. what about a crypto currency that had extensible feaures such as colored coins, decentralized peer-peer exchange/dns/chat and so on? Features that encourages the coin to be used in a transactional model?
Title: Re: PoS -- Is it really that good? Post by: btc24 on December 05, 2013, 04:13:18 PM PoS with Fair distribution is just perfect. Not seen any for the moment. Nxt might be interesting if top holders will share and contribute to community development.
Title: Re: PoS -- Is it really that good? Post by: dE_logics on December 05, 2013, 04:23:26 PM maybe PoS for a regular 1st generation coin would have the issues you touched on. what about a crypto currency that had extensible feaures such as colored coins, decentralized peer-peer exchange/dns/chat and so on? Features that encourages the coin to be used in a transactional model? Chat... hummmmm. Title: Re: PoS -- Is it really that good? Post by: miffman on December 05, 2013, 05:05:53 PM your argument that people will hold PoS since it can generate money is pretty valid, but this would work if it wasn't a crypto-currency, but crypto-commodity
|