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Replying to Avatar paulo

Not a dumb question at all.

Proof of Work requires real expenditure of energy as the proof that you’ve done the required job to secure transactions history. Energy expenditure can’t be faked because nobody can mess with the laws of thermodynamics.

Proof of Stake requires the deployment of large sums of capital as collateral to allow participants to secure transactions history. There’s no anchor in the real world and as a pure software consensus mechanism it is prone to manipulation.

Hope this helps.

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wasabi-pea 2y ago

OK this is super helpful. So effectively proof of stake can be achieved through large sums of capital which doesn’t help us escape us current system of rich using money to get richer ?

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paulo 2y ago

Pretty much because there’s no real constraint.

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