Why Proof of Work is a great system

1 comment

  1. blargh4 - Reply

    > Proof of Work is a way to connect cryptocurrency to a tangible real-world asset. Since millions have been spent by people and companies on equipment, electricity, and labor, there will be a much smaller likelihood that the demand for Bitcoin will shoot down anytime soon.

    This is nonsense.

    A bitcoin is not a share in a mining company – it does entail ownership or any rights whatsoever to any of those tangible assets.

    The case for proof of work is that it’s the most robust way to secure a blockchain – for example, even if there’s an attacker in the middle between a merchant and the network, trying to double-spend, it would be exceedingly difficult/expensive for them to create a believable forged block. Proof-of-stake systems fundamentally have lower barriers for these kinds of attacks, and various other issues like how you fairly distribute new coins.

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