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0 pointsulzeraj4y ago0 comments

> The mere fact that these peer-to-peer and decentralized alternatives exist, and that some portion of users will prefer to use them, is what makes this technology distinct.

I can imagine projects that can run on cheap hardware thriving but what happens when you put the weight of exchanges like Coinbase and their users against the hobbyst node count?

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mattdesl4y ago

This is already happening; centralized exchanges and staking pools like Kraken make up a high percentage of ETH2 validators (just as PoW seems to gravitate toward large mining pools).

Despite that, PoS has the benefit of offering decentralized staking pools like RocketPool, and the fact that they are growing may indicate that the chain will over time become more decentralized and less able to be centrally attacked[1]. The PoS mechanism itself is also perhaps more resilient to these kind of attacks, see [2].

None of this mechanism is as simple as PoW (which has worked quite well for BTC and ETH so far), but the environmental cost makes it worth exploring an alternative mechanism.

[1] - https://uk.style.yahoo.com/valid-points-ethereum-2-0-1130005...

[2] - https://vitalik.ca/general/2020/11/06/pos2020.html

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