The The purpose of this post not to advocate for Ethereum to use Slasher Instead of Dagger As its primary mining function. Rather, Slasher This is an important addition to our toolkit, in case proof of stake mining becomes more prevalent or compelling reasons to switch arise. Slasher Other cryptocurrencies can also be benefited if they wish to operate independently. Ethereum. Special Thanks to tacotime, for some inspiration and to Jack Walker For his suggestions of improvement.
Proof-of-stake mining has been an area of significant interest in the cryptocurrency space. The PPCoin was the first proof of-stake based cryptocurrency. Sunny King In 2012, it ranked among the top five altcoins. Based on a monetary base Since then. For good reason. Proof Of Stake There are numerous advantages to using this method. Proof Of Work As a mining technique. For exampleProof of stake is more energy efficient than proof-of work. While proof-ofwork requires miners who use their computational power to secure the network, proof–of-stake simulates burning. Real-world resources and energy are never wasted. SecondlyThere are also centralization concerns. With Mining has been dominated by specialized hardware since the beginning, as evidenced by proof-of work”application-specific integrated circuits” / ASICs), there is a high risk that one big player will be able to take control of the market. Intel A major bank or other financial institution will either take control of the market and de facto monopolize it. Hard Memory mining algorithms are like Scrypt Now! Dagger This is a major mitigation, but it’s not perfect. AgainProof of stake is, if possible, an excellent solution.
HoweverOne key issue is that proof-of-stake has been implemented in nearly every coin to date. Bitcoin developer put it, “nothing is at stake.” The The meaning of this statement is clearer when we analyze the exact situation in which a 51% attack attempt occurs, which is the scenario that any proof-of-work mechanism is supposed to prevent. In a 51% attack, attacker A sends a transaction from A to B, waits for the transaction to be confirmed in block K1 (with K leading), harvests a product from B, and then immediately creates another block K2 on top of K – with a transaction that sends the same bitcoins but this time from A to A. At There are currently two blockchains. One is from block Block K1 and the other from blockK2. If If B can add blocks to K2 faster that the entire legitimate network, the K2 blockchain wins. It will be like A to B had never received the payment. The The goal of proof of work is to make it require a certain amount compute power to create a block. In order for K2 and K1, B would need more computing power than all the legitimate networks combined.
In In the case of proof-of-participation, no computing power is required to create a work. Instead, money is required. In PPCoin, each “coin” You have one chance to be the lucky coin that creates a new block. The more coins you have, you will create new blocks faster. So A successful 51% attack requires neither more computing power nor more money. But We can see the differences between Proof Of Work And Proof Of Stake: In Proof Of WorkA miner can only mine on a single fork at a given time. The legitimate network will therefore support the legitimate blockchain and not just the chain. An attacker could steal blocks. HoweverMiners will have proof of stake if a fork occurs. This will allow them to mine in both the forks. In Miners are motivated to mine both if the attack is successful, even if it’s only a slim chance. If If a miner has many coins, he will resist attacks to protect the coins’ value. HoweverNetwork security can become a classic problem in an ecosystem that has few miners. Since no miner has any significant influence on the outcome of the event, therefore, all miners will act strictly. “selfishly.” “.
Some The above argument, if it isn’t supported by proof-ofwork, could be considered fatal for proof-ofstake. And This is true even if each string is aware of its own existence. HoweverThere is a clever solution to the problem. It’s called making the chain