undefined | Better HN

0 pointsFrogolocalypse8y ago0 comments

> Biggest owner has the same incentives as the smallest owner

Biggest owner can steal smallest owners money because biggest owner controls the consensus rules. So no, the incentives aren't aligned.

> what is the force

The only one that matters : Supply and demand, and no ability to cheat the system. The only thing that is happening is more and more people are recognizing it.

0 comments

vasilipupkin8y ago

Biggest owner can steal smaller owners money, maybe, depending on the POS design. But that would make no sense. I mean the biggest owners have the biggest stake in the integrity of the network, no? supply and demand can clear at X and at 0.5X, so that doesn't answer the question for me.

FrogolocalypseOP8y ago

Then you fail to understand the incentive structure. The only game-theory outcome to a PoS system is a monopoly. That's the reason why there aren't any successful ones. Because they require trust.

vasilipupkin8y ago

Agree, I fail to understand what you mean. If I'm a large owner of a POS coin, why would I want to steal smaller owners' coins ? Don't I want them to trust the system and keep buying more coins ?

erkkie8y ago

What about a hybrid PoS/PoW system? In reality, bitcoin as PoW is also near monopoly, more like oligopoly, still requiring trust.

1 more reply

j / k navigate · click thread line to collapse

0 pointsFrogolocalypse8y ago0 comments

> Biggest owner has the same incentives as the smallest owner

Biggest owner can steal smallest owners money because biggest owner controls the consensus rules. So no, the incentives aren't aligned.

> what is the force

The only one that matters : Supply and demand, and no ability to cheat the system. The only thing that is happening is more and more people are recognizing it.

0 comments

vasilipupkin8y ago

FrogolocalypseOP8y ago

Then you fail to understand the incentive structure. The only game-theory outcome to a PoS system is a monopoly. That's the reason why there aren't any successful ones. Because they require trust.

vasilipupkin8y ago

Agree, I fail to understand what you mean. If I'm a large owner of a POS coin, why would I want to steal smaller owners' coins ? Don't I want them to trust the system and keep buying more coins ?

erkkie8y ago

What about a hybrid PoS/PoW system? In reality, bitcoin as PoW is also near monopoly, more like oligopoly, still requiring trust.

1 more reply

j / k navigate · click thread line to collapse