Many analysts and experts pass comments on Proof-of-Work and Proof-of-Stake mechanisms about their mining profitability. Recently, the ethereum ethereum Блокчејн мрежатехнологија Следбеници: 0 Преглед на профилот Co-Founder Vitalik Buterin argued that the PoW mechanism is currently punishing miners with lower hash power.
PoW Hash Power Declines
The merge from PoW to the PoS mechanism will greatly impact miners as the hash power of Proof-of-Work (PoW) continues to decline. Although the PoS promises better energy efficiency and better output, the Proof-of-Stake consensus mechanism and Proof-of-Work consensus mechanism have become the main topic for experts and analysts for a long time.
Some PoW proponents have started to outline flaws in the PoS mechanism. Vitalik Buterin recently gave a counterargument to these statements about PoS. Udi Wertheimer, a popular биткоин орг биткоин орг Организатор на настантехнологијаРешение за плаќање Следбеници: 0 Преглед на профилот atheist and former блокчејн.com блокчејн.com Крипто тргување и информации Следбеници: 0 Преглед на профилот research lead at Colu, Udi Wertheimer, pointed out some issues about the PoS mechanism through Twitter. According to Wertheimer, PoS does not provide rewards to stakers; instead, PoS forces users to stake. Wertheimer argued that PoS’s reward to stakers is a way of punishment.
The Co-Founder of Ethereum, виталик бутерин виталик бутерин ко-основач во ethereum, списание Bitcoin Виталик Бутерин е професионален програмер и писател кој е познат како ко-основач на Ethereum. Бутерин заедно со Гевин Вуд, Чарлс Хоскинсон, Џозеф Лубин и Ентони Ди го лансираа Ethereum во 2014 година. Тој ко-создаде Ethereum кога разбра дека може да изгради нова, можеби подобрена верзија со повторување на блокчејнот на Bitcoin.
Тој е вклучен во заедницата на Bitcoin од 2011 година, пишувајќи и ко-основач на статии за списанието Bitcoin. Виталик го поврза Биткоин со калкулатор и иден блокчејн со паметен телефон и го користеше истиот метод за подобрување на силата на системот со тоа што го направи поопшта намена за блокчејн мрежниот простор.
Тој беше почестен со наградата Thiel Fellowship во 2014 година за реализација на неговите иновативни научни и технички проекти, ја освои наградата на Светската технолошка мрежа, Fortune 40 под 40 листи и се појави на листата под 30 години на Форбс на 23-годишна возраст. ИзведувачотПрограмер/програмеравтор Следбеници: 0 Преглед на профилот , joined the discussion and gave a harsh reply to these accusations made on PoS by Wertheimer. If Wertheimer’s assertion is considered for all consensus mechanisms, then PoW punishes miners whose percentage of hash power is lower than the supply of the asset. Buterin said, “And PoW penalizes anyone who has a smaller percentage of hash power than their percentage of the coin supply. (Actually, it penalizes much more than that because profit < revenue, but you get the point).”
Not Much Profit In PoW
However, Buterin’s counter arguments are correct, as miners encounter several issues in the PoW mechanism. Generally, there is significantly less profit for miners as their hash power is meager compared to the ratio of asset supply. This is because of the daily increasing competition in the mining industry, as miners are lured by mining profits, and when they enter the crypto mining market, the difficulty soars.
Additionally, the cost of mining rigs and electricity has touched high in some countries, resulting in less profit in mining than ever before, and some PoW miners have started giving up their mining business. Buterin made the arguments to counter Wertheimer’s assertion.
Wertheimer’s point was about the network’s non-stakers who get diluted when more tokens are circulated into the network to reward stakers, significantly building an inflationary trend of the token.
Дали ова пишување беше корисно?
Source: https://coinpedia.org/mining/pow-mechanism-punishes-miners-with-lower-hash-power-says-ethereum-co-founder-vitalik-buterin/