But this solution should not be appealing to anyone who wants to use the cryptocurrency even if a cryptocurrency is better funded without much mining (of course, if mining is replaced with another consensus mechanism after all the coins have been created, then this objection does not stand). After all, Satoshi Nakamoto did not fund Bitcoin by selling bitcoins. There are other ways to fund a cryptocurrency project without alternate consensus mechanisms.
I don’t understand why that would be an argument against just using proof of stake. Proof of stake has a bunch of different benefits. It solves the energy problem.
It also increases the amount of writes that the blockchain can do per minute which is very important for usability.
Proof-of-stake is still wasteful since it promotes pump and dump scams and causes people to waste their money on scam projects. If the creators are able to get their reward at the very beginning of a project, they will be more interested in short-term gains rather than a long-term token that will last. Humans are not psychologically/socially equipped to invest in proof-of-stake cryptocurrencies since they tend to get scammed.
Proof-of-stake is just technology that can be used in different ways. It can be used for pump and dump scams but also for different purposes.
If you are building a product that’s actually setup to create long-term value it’s useful to use proof-of-stake is it allows you to provide more value because you have higher throughput while using less energy.
If the value of the project rises as features are build out, there’s an incentive to build out the project. There’s no good reason for anyone who wants to build a system that actually creates value to use technology that burns more energy and provides less performance.
I don’t understand why that would be an argument against just using proof of stake. Proof of stake has a bunch of different benefits. It solves the energy problem.
It also increases the amount of writes that the blockchain can do per minute which is very important for usability.
Proof-of-stake is still wasteful since it promotes pump and dump scams and causes people to waste their money on scam projects. If the creators are able to get their reward at the very beginning of a project, they will be more interested in short-term gains rather than a long-term token that will last. Humans are not psychologically/socially equipped to invest in proof-of-stake cryptocurrencies since they tend to get scammed.
Proof-of-stake is just technology that can be used in different ways. It can be used for pump and dump scams but also for different purposes.
If you are building a product that’s actually setup to create long-term value it’s useful to use proof-of-stake is it allows you to provide more value because you have higher throughput while using less energy.
If the value of the project rises as features are build out, there’s an incentive to build out the project. There’s no good reason for anyone who wants to build a system that actually creates value to use technology that burns more energy and provides less performance.