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Proof of Work relies on game theory as well as Cryptography. Just like Proof of Stake. Both systems can be used without real-world identities.

The crucial difference I think is what Saylor said: PoW is inherently tied to the thermodynamic reality. PoS isn't.

That changes the incentives for PoS to a politicized consensus, just like central banking. In theory both could work. But of course, that's not reality.

waxwing 2y ago

Interesting points, thanks.

I agree re: real world anchor, see this that I wrote a few years ago:

https://reyify.com/blog/pow-a-pictorial-essay

The game theory basis of pow for consensus is about as simple as it gets, it's like "minimally game theory dependent" somehow. I don't think it's really correct that bitcoin consensus depends on non-real world identity in the same way as PoS; yes miners mine coins to addresses, but they are purely ephemeral. With stake, it's really not quite like that; those ephemeral identities/accounts are used as *inputs* to consensus.

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Five 2y ago

Great article!

...Yes, basically in PoS I literally have to convince someone to sell/send me coins while in bitcoin anyone could just mine coins without permission.

I just need to start generating hashes in whatever way I can.