re: Official CryptoTalk Thread

quote:

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better tech

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Sorry, "better" was probably not the most appropriate word choice there. I typed up the post quickly on my phone. There are tradeoffs with all of the different protocols as is the case with all engineered systems.

I'm sure the regulars know know about the "scalability trilemma" and the concept that all protocols are designed around the idea that among security, decentralization and scalability you generally have to sacrifice one to optimize the other two attributes. The "holy grail" would be a protocol that could offer all three, if it is even possible. For consensus though, the basic idea is to utilize or spend some scarce resource within the system to secure the network. Tokens and/or network availability for PoS and hash power for PoW.

BTC trades scalability for security and decentralization. However with PoW, it would seem that the rise of ASICs and power cost differentials have defeated the theoretical decentralization aspect to some degree. That is arguable of course.

The so called "next gen" protocols are almost all PoS or some hybrid form of PoS. Theoretically, they trade off security to allow for high throughput and arguably better decentralization. How much security is sacrificed is arguable. The game becomes engineering better security into the system by incentives. The nature of "decentralized" also becomes arguable as some PoS systems tends to lead to a rich get richer scenario.

Without doubt, the PoS and hybrid systems offer order of magnitude better energy efficiency over PoW. That is by design. Perhaps both will be needed to satisfy different niches. The market will sort it out.

Fund managers, public companies and the like are all dealing with government ESG mandates being forced down their throats. Having pure PoW coins in your portfolios or on the balance sheet will put you in the "shame" category. I'm not arguing that I agree with ESG. Just saying how it appears to be going down from my perspective. The "energy hog" narrative of BTC was low hanging fruit in todays political environment.

eta: Everyone should know by now that a narrative does not necessarily have to be true for government and/or media to run with it if is suits governments greater aims. :tin foil hat: