Comment Proof of stake criticism (Score 1) 223
Before assuming proof of stake is a panacea, read the article(s) by Paul Storc, https://www.truthcoin.info/blo...
Basically, due to the law that marginal cost equals marginal revenue, if you use Proof of Stake, you're still using Proof of Work, it's just obscured (people will generate new PoS chains that pay them the reward and only publish the one that does) and you can't see that it's using the same amount of energy. In PoW you can determine how much energy is being used by looking at the rate of blocks and how many proof of work bits are zero in the block hash. This is why people point at the proof of work as wasteful, because they can easily calculate a number. We need proof of work to solve the Byzantine Generals' problem, to allow trading with untrusted parties. If you don't want to waste energy, the best way is to increase trust, by building relationships and then you can trade on credit instead of BTC, pay less BTC fees and thus incentivize less mining. If everyone trusted one another no one would need BTC.