Offchain perspective: PoW = PoS?

Seen many posts/comments that rip into PoS as problematic, cause it basically means “Those that have, will get more” as the onchain principle. From my limited understanding, I would say, I agree.

But doesn’t PoW in the end have the same “baked in” dynamic, when you look at it from an offchain perspective:

The more “work” you can provide, the more you get.
How do you provide more “work”? Usually with more hardware and energy(?)
How do you get those? Usually by already having money (or other forms of capital you can leverage for those things).
In the end, those who already have (off chain) will get more (on chain).

Full disclosure: My understanding of PoW and PoS is only on a base level, and due to the above described understanding, I hold neither PoS nor PoW coins. Only have a bit XRP and XLM. So I have no vested interest in PoW and PoS, I just want to hear what PoW and PoS supporters think about this specific point of where there specific technology stands on the matter of “Those that have, will get more”.

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6 thoughts on “Offchain perspective: PoW = PoS?”

  1. Yup, just swap the dollar value for your stake with the dollar value for your mining equipment.

    In some chains (like btc) the mining equipment is so expensive that its impossible for a normal user to mine with any efficiency.

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  2. I mean, at the end of the day, Crypto is a capital market and “those that have, will get more” is always true in capital markets.

    PoS is sometimes likened to a stock dividend in this regard. The more shares you have now, the more shares you’ll receive in your dividend. By comparison, PoW could be likened to a stock with no dividend — the only way to get more is by amassing the capital to buy more (or mine more, which is effectively just buying more with extra steps). So “have more -> get more” is very much the reality of the situation.

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  3. Work can also mean labor. If you work more, you earn more, meaning you can buy more.

    I’m not rich by any stretch of the imagination, so if I want more Bitcoin than I can afford, and I’m not going to mine it, then I have to work more.

    That’s why I work seven days a week. Working overtime provides me
    with an additional $27,456 of income each year. All of that goes into crypto.

    Hopefully, making these sacrifices now will pay off in the long run, and will allow me to retire early.

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  4. The thing is that the stuff you need for PoW whether it’s the latest ASICs or electricity aren’t free. That leads to two benefits to PoW that you don’t get in PoS:

    1) Better distribution over time-miners are [forced to sell at least some of their mined bitcoin to pay for power and new ASICs](https://fortune.com/2022/07/05/core-scientific-top-crypto-miner-sold-most-of-its-bitcoin/) which helps distribute Bitcoin to other and thus reduces excess concentration of wealth. This doesn’t happen with PoS since there’s no cost to staking.

    2) Genuine scarcity-because those real world inputs aren’t infinite you also have real world resources tied to the creation of a PoW cryptocurrency. With PoW you know how much security there is with a blockchain and how much effort went into securing it and making it a limited resource. If something like Bitcoin forks it’s very obvious which one is the more secure and valuable asset because it’s the one with the most PoW. With PoS you can have two forks of the same blockchain and they would be **equally secure** and have the same proof of stake on both chains. Which is the chain to coalesce around to ensure true scarcity? If there’s no mechanism to determine which chain is the real one then you’ve just diluted your supply.

    A lot of the benefits of PoW aren’t really easy to grasp or intuitive but I think they’re things that Satoshi actually thought a long time about before deciding that PoW was the only way to make something like Bitcoin ***stay*** scarce and valuable. We’ll see if he was right

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  5. Resource of ownership in pos is limited, meaning that once you have a required ownership majority in the network you is the king _forever_. With pow the required resource (energy and hashrate) is unlimited, there is always a potential competition with better hardware or cheaper electricity.
    That’s why pow is safer than pos on the long run.

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