Vitalik Buterin responded to the allegations against Proof-Of-Stake. Nick Payton, a bitcoiner, claimed that Ethereum and Proof-of-Stake blockchains are securities since you can vote to change their properties.
It’s amazing how some PoW proponents just keep repeating the unmitigated bare-faced lie that PoS includes voting on protocol parameters (it doesn’t, just like PoW doesn’t) and this so often just goes unchallenged.
Nodes reject invalid blocks, in PoS and in PoW. It’s not hard. https://t.co/vLEWWsWIsG
— vitalik.eth (@VitalikButerin) July 12, 2022
Payton’s assertion is very similar to that made by MicroStrategy CEO Michael Saylor. Vitalik responded to Payton’s comments and called them “outright lies” proponents of proof of work.
Is Ethereum a security or a commodity?
The conversation about the nature of cryptocurrency tokens has long prevailed. Recently, SEC Chairman Gary Gensler revealed that bitcoin was the only cryptocurrency he could call a commodity. In an interview with Altcoin Daily, Michael Saylor revealed that, in his opinion, bitcoin is the only cryptocurrency, while Ethereum is a security.
Claiming that Ethereum was issued by an ICO, has a management team, and has a hard-fork, Saylor argued that Ethereum can only be a security. He also revealed that the Ethereum Delayed Difficulty Bomb will destroy the Ethereum mining industry.
Vitalik claims that the argument that PoS includes protocol parameter voting is a lie. According to him, in PoS, nodes just discard invalid blocks, like in PoW.
Vitalik argued that PoW also allows voting rights on several issues. Buterin’s passionate defense of Proof-of-Stake can be explained by the upcoming Ethereum merger, which will change Ethereum’s consensus mechanism from Proof-Of-Work to Proof-Of-Stake.
The merger would reduce Ethereum’s power consumption by more than 99%, while increasing scalability and reducing gas fees.
PoW versus PoS
With the upcoming ETH merger, the dispute between Proof-of-Work and Proof-of-Stake is not new. Recently, Jack Dorsey, the ex-CEO of Twitter and die-hard Proof-Of-Work supporter, got into a Twitter spat with FTX CEO Sam Bankman-Fried.
Sam Bankman-Fried has argued that Proof-Of-Stake is the only consensus mechanism that has a future in everyday payment transactions. Highlighting the slowness and power consumption of PoW, SBF argued that bitcoin could only be used as a store of value.
Dorsey took offense to SBF’s comment and asked him why he didn’t mention the Lightning protocol, which runs Bitcoin’s daily transaction mechanism.
To display Hide the table of contents