What is Proof-of-Work and Proof-of-Stake Mining?
Proof of stake doesn't mean you prove you *could* mine, but literally means how much stake you have in the game. Ie, Etherium wants to move to proof of stake. That will mean that you "mine" by locking up Etherium you own in master nodes you create. Your hardware just runs these master nodes rather than solving puzzles. You aren't rewarded for the work you do, instead you are rewarded for the amount of Etherium you have (locked away) in these nodes.
This will mean the way to "mine" would be simply to buy in and run a node (or multiple nodes). Hardware wise this is much more efficient than the puzzle solving in proof of work mining. For the coin itself, this will incentivise behaviour that drives up the cost of Etherium, ie, buying lots of it and storing it away. It will use much less energy.
The downside is it rewards those who already have bulk etherium and makes it impossible to start from scratch without spending a lot of money to buy in. The rich get richer and the poor eat sh_t. Effectively it could be compared to earning interest on your Eth. The more you have, the more you earn.
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now