1/ Why doesn’t #Bitcoin move from proof-of-work to proof-of-stake?
Oslo Freedom Forum #OsloFF explained PoW vs PoS in the best way I’ve seen in a while.
A thread 🧵 with quotes 👇
2/ “Every system that’s existed has been a stakeholder-run system, so they’re all PoS systems.
PoS systems are the legacy systems that existed forever where people that control the coins, the stakeholders, can disrupt the network, change it or shut it down.”
3/ “#Bitcoin created a triple-entry [ledger] from the old double-entry [ledger] and the ledger self-audits and writes on-chain. It’s an immutable ledger entry that can never be altered.
That’s the best accounting technology that’s ever been created by humans.”
4/ “So anything that lives on top of this #Bitcoin network will be better than the legacy system that it replaces.
And it is only because of PoW that you’re able to have this immutable ledger and all the other layers for financial and economical freedom.”
5/ “Energy serves a very important role. It minimizes human governance.
If you remove the energy component, you’re recreating the legacy system but on a blockchain.”
6/ “Basically, PoS relies on circular logic, where the largest coin holders determine the state of the ledger and the state of the ledger determines who the largest coin holders are.
PoS is doing completely different things than what #Bitcoin is doing.”
7/ “#Bitcoin , without energy, is like airplanes with the flight removed. It’s taking out the key innovation of what makes it so useful.”
8/ “PoW allows everyone to decide on the correct ledger state with no human oversight or governance.
PoS is just a fancy way of referring to shareholder governance or a stakeholder-led system where ownership in the system determines authority in the system.”
9/ “That’s how SWIFT works. That’s how PayPal works. That’s how banks work. Those are all PoS systems.
PoS systems work fine, they just aren’t depoliticized. They don’t allow just anybody to transact.”
End/ “In my view, money should be depoliticized.
It should be a right to transact with whomever you want in a private way. And that’s been stripped away from us as we’ve digitized finance.”