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authorKeagan McClelland <keagan.mcclelland@gmail.com>2021-06-23 12:14:04 -0600
committerbitcoindev <bitcoindev@gnusha.org>2021-06-23 18:14:19 +0000
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Re: [bitcoin-dev] Opinion on proof of stake in future
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+In-Reply-To: <CAGpPWDZjsiHgN2_nzgpwF-Pq8btdbPQm3=f06S8nNfpSp+_GHw@mail.gmail.com>
+From: Keagan McClelland <keagan.mcclelland@gmail.com>
+Date: Wed, 23 Jun 2021 12:14:04 -0600
+Message-ID: <CALeFGL3GZZy8J3VKbuQjof_c7nbGTCd-eY3_h3mH=mZnKehLMw@mail.gmail.com>
+To: Billy Tetrud <billy.tetrud@gmail.com>,
+ Bitcoin Protocol Discussion <bitcoin-dev@lists.linuxfoundation.org>
+Content-Type: multipart/alternative; boundary="000000000000ddb82205c572dff8"
+X-Mailman-Approved-At: Wed, 23 Jun 2021 20:59:47 +0000
+Subject: Re: [bitcoin-dev] Opinion on proof of stake in future
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+
+--000000000000ddb82205c572dff8
+Content-Type: text/plain; charset="UTF-8"
+
+> Premise: There is a healthy exchange market for PoS Coin X with tens of
+thousands of participants bidding to buy and sell the coin for other
+currencies on the market.
+
+The difference here though is that Proof of Stake allows the quorum of coin
+holders to block the exchange of said coins if they are going to a
+particular destination. Nothing requires these staking nodes to include
+particular transactions into a block. With that in mind, it isn't just that
+you require the permission of the person who sold you the coins, which I
+can agree is a less dangerous form of permission, but you must also require
+the permission of at least 51% of the coin holders to even receive those
+coins in the first place. This is not true in a Proof of Work system and
+this difference absolutely should not be trivialized.
+
+Keagan
+
+On Wed, Jun 23, 2021 at 2:30 AM Billy Tetrud via bitcoin-dev <
+bitcoin-dev@lists.linuxfoundation.org> wrote:
+
+> > Barrier to entry in PoS is being given permission by the previous owner
+> of a token
+>
+> The idea that proof of stake is not permissionless is completely invalid.
+> It pains me to see such an argument here. Perhaps we can come to an
+> agreement by being more specific. I'd like to propose the following:
+>
+> Premise: There is a healthy exchange market for PoS Coin X with tens of
+> thousands of participants bidding to buy and sell the coin for other
+> currencies on the market.
+>
+> If the premise above is true, then there is no significant permission
+> needed to enter the market for minting blocks for PoS Coin X. If you make a
+> bid on someone's coins and they don't like you and refuse, you can move on
+> to any one of the other tens of thousands of people in that marketplace.
+> Would you agree, Cloud Strife, that this situation couldn't be considered
+> "permissioned"?
+>
+> If not, consider that participation in *any* decentralized system requires
+> the permission of at least one user in that system. If there are thousands
+> of bitcoin public nodes, you require the permission of at least one of them
+> to participate in bitcoin. No one considers bitcoin "permissioned" because
+> of this. Do you agree?
+>
+> On Thu, Jun 17, 2021 at 1:15 PM Cloud Strife via bitcoin-dev <
+> bitcoin-dev@lists.linuxfoundation.org> wrote:
+>
+>> Barrier to entry in PoW is matter for hardware and energy is
+>> permissionless and exist all over the universe, permissionless cost which
+>> exists for everyone no matter who because it's unforgeable.
+>>
+>> Barrier to entry in PoS is being given permission by the previous owner
+>> of a token for you to have it via transfer or sale, both choices they never
+>> have to make since there are no continuous costs with producing blocks
+>> forcing it. A permission is an infinitely high barrier to entry if the
+>> previous owner, like the premining party, refuses to give up the token they
+>> control.
+>>
+>> You're skipping the part where you depend on a permission of a central
+>> party in control of the authority token before you can produce blocks on
+>> your rasberry Pi.
+>>
+>> Proof of stake is not in any possible way relevant to permissionless
+>> protocols, and thus not possibly relevant to decentralized protocols where
+>> control must be distributed to independent (i.e. permissionless) parties.
+>>
+>> There's nothing of relevance to discuss and this has been figured out
+>> long long ago.
+>>
+>>
+>> https://github.com/libbitcoin/libbitcoin-system/wiki/Proof-of-Stake-Fallacy
+>>
+>>
+>> https://medium.com/@factchecker9000/nothing-is-worse-than-proof-of-stake-e70b12b988ca
+>>
+>>
+>>
+>>
+>> On Tue, Jun 15, 2021 at 7:13 AM James MacWhyte via bitcoin-dev <
+>> bitcoin-dev@lists.linuxfoundation.org> wrote:
+>>
+>>>
+>>> @Lloyd wrote:
+>>>
+>>> Of course in reality no one wants to keep their coin holding keys online
+>>>> so in Alogorand you can authorize a set of "participation keys"[1] that
+>>>> will be used to create blocks on your coin holding key's behalf.
+>>>> Hopefully you've spotted the problem.
+>>>> You can send your participation keys to any malicious party with a nice
+>>>> website (see random example [2]) offering you a good return.
+>>>> Damn it's still Proof-of-SquareSpace!
+>>>>
+>>>
+>>> I believe we are talking about a comparison to PoW, correct? If you want
+>>> to mine PoW, you need to buy expensive hardware and configure it to work,
+>>> and wait a long time to get any return by solo mining. Or you can join a
+>>> mining pool, which might use your hashing power for nefarious purposes. Or
+>>> you might skip the hardware all together and fall for some "cloud mining"
+>>> scheme with a pretty website and a high rate of advertised return. So as
+>>> you can see, Proof-of-SquareSpace exists in PoW as well!
+>>>
+>>> The PoS equivalent of buying mining hardware is setting up your own
+>>> validator and not outsourcing that to anyone else. So both PoW and PoS have
+>>> the professional/expert way of participating, and the fraud-prone, amateur
+>>> way of participating. The only difference is, with PoS the
+>>> professional/expert way is accessible to anyone with a raspberry Pi and a
+>>> web connection, which is a much lower barrier to entry than PoW.
+>>> _______________________________________________
+>>> bitcoin-dev mailing list
+>>> bitcoin-dev@lists.linuxfoundation.org
+>>> https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev
+>>>
+>> _______________________________________________
+>> bitcoin-dev mailing list
+>> bitcoin-dev@lists.linuxfoundation.org
+>> https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev
+>>
+> _______________________________________________
+> bitcoin-dev mailing list
+> bitcoin-dev@lists.linuxfoundation.org
+> https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev
+>
+
+--000000000000ddb82205c572dff8
+Content-Type: text/html; charset="UTF-8"
+Content-Transfer-Encoding: quoted-printable
+
+<div dir=3D"ltr"><div>&gt; Premise: There is a healthy exchange market for =
+PoS Coin X with tens of thousands of participants bidding to buy and sell t=
+he coin for other currencies on the market.=C2=A0<br></div><div><br></div>T=
+he difference here though is that Proof of Stake allows the quorum of coin =
+holders to block the exchange of said coins if they are going to a particul=
+ar destination. Nothing requires these staking nodes to include particular =
+transactions into a block. With that in mind, it isn&#39;t just that you re=
+quire the permission of the person who sold you the coins, which I can agre=
+e is a less dangerous form of permission, but you must also require the per=
+mission of at least 51% of the coin holders to even receive those coins in =
+the first place. This is not true in a Proof of Work system and this differ=
+ence absolutely should not be trivialized.<div><br></div><div>Keagan</div><=
+/div><br><div class=3D"gmail_quote"><div dir=3D"ltr" class=3D"gmail_attr">O=
+n Wed, Jun 23, 2021 at 2:30 AM Billy Tetrud via bitcoin-dev &lt;<a href=3D"=
+mailto:bitcoin-dev@lists.linuxfoundation.org">bitcoin-dev@lists.linuxfounda=
+tion.org</a>&gt; wrote:<br></div><blockquote class=3D"gmail_quote" style=3D=
+"margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-le=
+ft:1ex"><div dir=3D"ltr">&gt;=C2=A0
+
+Barrier to entry in PoS is being given permission by the previous owner of =
+a token<div><br></div><div>The idea that proof of stake is not permissionle=
+ss is completely invalid. It pains me to see such an argument here. Perhaps=
+ we can come to an agreement by being more specific. I&#39;d like to propos=
+e the following:</div><div><br></div><div>Premise: There is a healthy excha=
+nge market for PoS Coin X with tens of thousands of participants bidding to=
+ buy and sell the coin for other currencies on the market.=C2=A0</div><div>=
+<br></div><div>If the premise above is true, then there is no significant p=
+ermission needed to enter the market for minting blocks for PoS Coin X. If =
+you make a bid on someone&#39;s coins and they don&#39;t like you and refus=
+e, you can move on to any one of the other tens of thousands of people in t=
+hat marketplace. Would you agree, Cloud Strife, that this situation couldn&=
+#39;t be considered &quot;permissioned&quot;?=C2=A0</div><div><br>If not, c=
+onsider that participation in *any* decentralized system requires the permi=
+ssion of at least one user in that system. If there are thousands of bitcoi=
+n public nodes, you require the permission of at least one of them to parti=
+cipate in bitcoin. No one considers bitcoin &quot;permissioned&quot; becaus=
+e of this. Do you agree?=C2=A0</div></div><br><div class=3D"gmail_quote"><d=
+iv dir=3D"ltr" class=3D"gmail_attr">On Thu, Jun 17, 2021 at 1:15 PM Cloud S=
+trife via bitcoin-dev &lt;<a href=3D"mailto:bitcoin-dev@lists.linuxfoundati=
+on.org" target=3D"_blank">bitcoin-dev@lists.linuxfoundation.org</a>&gt; wro=
+te:<br></div><blockquote class=3D"gmail_quote" style=3D"margin:0px 0px 0px =
+0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex"><div dir=3D"=
+ltr"><div dir=3D"ltr">Barrier to entry in PoW is matter for hardware and en=
+ergy is permissionless and exist all over the universe, permissionless=C2=
+=A0cost which exists for everyone no matter who because it&#39;s unforgeabl=
+e.<div><br></div><div>Barrier to entry in PoS is being given permission by =
+the previous owner of a token for you to have it via transfer or sale, both=
+ choices they never have to make since there are no continuous=C2=A0costs w=
+ith producing blocks forcing it. A permission is an infinitely high barrier=
+ to entry if the previous owner, like the premining party, refuses to give =
+up the token they control.</div><div><br></div><div>You&#39;re skipping the=
+ part where you depend on a permission of a central party in control of the=
+ authority token before you can produce blocks on your rasberry=C2=A0Pi.</d=
+iv><div><br></div><div>Proof of stake is not in any possible way relevant t=
+o permissionless protocols, and thus not possibly relevant to decentralized=
+ protocols where control must be distributed to independent (i.e. permissio=
+nless) parties.</div><div><br></div><div>There&#39;s nothing=C2=A0of releva=
+nce to discuss and this has been figured out long long ago.</div><div><br><=
+/div><div><a href=3D"https://github.com/libbitcoin/libbitcoin-system/wiki/P=
+roof-of-Stake-Fallacy" target=3D"_blank">https://github.com/libbitcoin/libb=
+itcoin-system/wiki/Proof-of-Stake-Fallacy</a><br></div><div><br></div><div>=
+<a href=3D"https://medium.com/@factchecker9000/nothing-is-worse-than-proof-=
+of-stake-e70b12b988ca" target=3D"_blank">https://medium.com/@factchecker900=
+0/nothing-is-worse-than-proof-of-stake-e70b12b988ca</a><br></div><div><br><=
+/div><div><br></div><div><br></div></div><br><div class=3D"gmail_quote"><di=
+v dir=3D"ltr" class=3D"gmail_attr">On Tue, Jun 15, 2021 at 7:13 AM James Ma=
+cWhyte via bitcoin-dev &lt;<a href=3D"mailto:bitcoin-dev@lists.linuxfoundat=
+ion.org" target=3D"_blank">bitcoin-dev@lists.linuxfoundation.org</a>&gt; wr=
+ote:<br></div><blockquote class=3D"gmail_quote" style=3D"margin:0px 0px 0px=
+ 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex"><div dir=3D=
+"ltr"><div dir=3D"ltr"><br clear=3D"all"><div><div dir=3D"ltr"><div dir=3D"=
+ltr"><div>@Lloyd wrote:</div><div><br></div></div></div></div></div><div cl=
+ass=3D"gmail_quote"><blockquote class=3D"gmail_quote" style=3D"margin:0px 0=
+px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex"><div =
+dir=3D"ltr">Of course in reality no one wants to keep their coin holding ke=
+ys online so in Alogorand you can authorize a set of &quot;participation ke=
+ys&quot;[1] that will be used to create blocks on your coin holding key&#39=
+;s behalf.<br>Hopefully you&#39;ve spotted the problem.<br>You can send you=
+r participation keys to any malicious party with a nice website (see random=
+ example [2]) offering you a good return.<br>Damn it&#39;s still Proof-of-S=
+quareSpace!<br></div></blockquote><div><br></div><div>I believe we are talk=
+ing about a comparison to PoW, correct? If you want to mine PoW, you need t=
+o buy expensive hardware and configure it to work, and wait a long time to =
+get any return by solo mining. Or you can join a mining pool, which might u=
+se your hashing power for nefarious purposes. Or you might skip the hardwar=
+e all together and fall for some &quot;cloud mining&quot; scheme with a pre=
+tty website and a high rate of advertised return. So as you can see, Proof-=
+of-SquareSpace exists in PoW as well!</div><div><br></div><div>The PoS equi=
+valent of buying mining hardware is setting up your own validator and not o=
+utsourcing that to anyone else. So both PoW and PoS have the professional/e=
+xpert way of participating, and the fraud-prone, amateur way of participati=
+ng. The only difference is, with PoS the professional/expert way is accessi=
+ble to anyone with a raspberry Pi and a web connection, which is a much low=
+er barrier to entry than PoW.</div></div></div>
+_______________________________________________<br>
+bitcoin-dev mailing list<br>
+<a href=3D"mailto:bitcoin-dev@lists.linuxfoundation.org" target=3D"_blank">=
+bitcoin-dev@lists.linuxfoundation.org</a><br>
+<a href=3D"https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev" =
+rel=3D"noreferrer" target=3D"_blank">https://lists.linuxfoundation.org/mail=
+man/listinfo/bitcoin-dev</a><br>
+</blockquote></div></div>
+_______________________________________________<br>
+bitcoin-dev mailing list<br>
+<a href=3D"mailto:bitcoin-dev@lists.linuxfoundation.org" target=3D"_blank">=
+bitcoin-dev@lists.linuxfoundation.org</a><br>
+<a href=3D"https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev" =
+rel=3D"noreferrer" target=3D"_blank">https://lists.linuxfoundation.org/mail=
+man/listinfo/bitcoin-dev</a><br>
+</blockquote></div>
+_______________________________________________<br>
+bitcoin-dev mailing list<br>
+<a href=3D"mailto:bitcoin-dev@lists.linuxfoundation.org" target=3D"_blank">=
+bitcoin-dev@lists.linuxfoundation.org</a><br>
+<a href=3D"https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev" =
+rel=3D"noreferrer" target=3D"_blank">https://lists.linuxfoundation.org/mail=
+man/listinfo/bitcoin-dev</a><br>
+</blockquote></div>
+
+--000000000000ddb82205c572dff8--
+