Vitalik Buterin responded to the accusations against Proof-Of-Stake. Nick Payton, a bitcoiner, claimed that the Ethereum and Proof-of-Stake blockchains are securities, since you can vote to change their properties.
It’s amazing how some PoW advocates keep repeating the blatant lie that PoS includes voting on protocol parameters (it doesn’t, just like PoW doesn’t) and this is so often left unchallenged.
— vitalik.eth (@VitalikButerin) July 12, 2022
Payton’s claim is very similar to one made by MicroStrategy CEO Michael Saylor. Vitalik responded to Payton’s comments, calling them “pure liesproponents of proof of work.
Is Ethereum a security or a commodity?
The conversation about the nature of cryptocurrency tokens has long been prevalent. Recently, SEC Chairman Gary Gensler revealed that bitcoin was the only cryptocurrency he could call a commodity. In an interview with Altcoin Daily, Michael Saylor revealed that in his opinion, bitcoin is the only cryptocurrency, while Ethereum is a security.
Stating that Ethereum was issued by an ICO, has a management team, and is hard forked, Saylor argued that Ethereum can only be a security. He also revealed that the Ethereum delayed difficulty bomb will destroy the Ethereum mining industry.
Vitalik claims that the argument that PoS includes protocol parameter voting is a lie. According to him, in PoS, nodes simply discard invalid blocks, like in PoW.
Vitalik argued that PoW also allows voting rights on various issues. Buterin’s passionate defense of proof-of-stake can be explained by the upcoming Ethereum merger, which will change Ethereum’s consensus mechanism from proof-of-work to proof-of-stake.
The merger would reduce Ethereum’s power consumption by more than 99%, while increasing scalability and lowering gas fees.
PoW vs. PoS
With the upcoming ETH merger, the dispute between Proof of Work and Proof of Stake is not new. Recently, Jack Dorsey, the former CEO of Twitter and staunch proof-of-work supporter, got into a Twitter dispute with FTX CEO Sam Bankman-Fried.
Sam Bankman-Fried has argued that proof-of-stake is the only consensus mechanism that has a future in everyday payment transactions. Highlighting the slowness and power consumption of PoW, SBF argued that bitcoin could only be used as a store of value.
Dorsey took offense at SBF’s comment and asked why he didn’t mention the Lightning protocol, which runs Bitcoin’s daily trading mechanism.
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