In this video, I discuss Ethereum's transition from Proof of Work to Proof of Stake, as well as the problems with the latter consensus mechanism.
1) Under Proof of Stake, the rich get richer: PoS looks very similar to the current Federal Reserve system and its constituent banks. PoS suffers from the Cantillon Effect, just like the current fiat system.
2) There is no way to settle fork disputes or competing blockchains (under a partitioned internet) with PoS.
3) Under PoS, the entire network can be taken down if the validators decide to collude. There may be financial or political incentives to do this that will exceed the cost of the lost coins that were staked.
4) It is much more expensive to rewrite previous blocks in the blockchain under PoW than it is under PoS. This makes PoW inherently more secure.
Not investment advice! Consult a financial advisor.
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