Aggelos Kiayias, Input Output Hong Kong [IOHK] Chief Scientist and Director of Blockchain Technology at University of Edinburgh reveals his opinion about developing a secure proof of stake algorithm.
Validating block transactions or mining based on the number of coins a person holds is called as Proof of Stake or PoS. This simply means that the mining power increases according to the Bitcoin or Altcoin the miner owns.
According to Aggelos the most important motivation of proof of stake is the way it scales. It helps in increasing the number of markets which executes the blockchain protocols. These protocols by nature are permissionless properties at the same time there is a very hefty price to be paid for that. As the protocol scales, the Energy requirements for running the protocol increase substantially, so this is the main motivation for designing the proof of stake protocol.
“Their energy footprints are very small, as more and more parties engage with the protocol, it is not necessary to reflex to very big energy expenditure. This is the one main drive for designing the protocols.”
Another interesting aspect which he mentioned is that at the initial bootstrapping phase there is permissionless protocol like Bitcoin’s blockchain and when a small amount of hashing power invested in it, the protocol by nature is vulnerable to any external force that has a big amount of hashing power in it. This is similar to a small number of parties with a limited amount of hashing power executing a small blockchain which is based on a group of work.
These external forces have the power to completely destruct the blockchain.
This is the main concern for smaller blockchain protocols that do not involve a large amount of hashing power. This is the area where proof of stake plays the major role.
These protocols are not susceptible to this type of external force that can destabilize them if the hashing power invested in the protocol execution is not substantially high.
Antony OMeara, a cryptocurrency miner says:
“Get a worldwide money transferring system quick…market is begging market is there…an AFA wallet system should be a common jtem in third world especially…push hard then regulate according to govt.”
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