it seems to me that the mining model has it "flaws" too since it tends to concentrate mining power with very few (which might be a risk). I understand the incentive of it but .... somehow we end up with centralization. Maybe the future of crypto currencies lies somewhere else unless I have not understood the present situation.


1 Answer 1


The PoW mining is the best mining scheme. It makes the blockchain more secure than PoS. Bitcoin is not worth 17k because it is scarce, but because it is the safest blockchain ever, a blockchain that can't be hacked. PoS has not yet proven its security model. Wait a couple of years more, when there will be high valued PoS currencies and their security will be tested. Also, something that has not been difficult to create isn't worth much. That's why PoS currencies do not appreciate quickly.

Miners concentrate in a single large pool because this is a new concept and few people know how to configure them. Wait for the first mining pool to be hacked, and everybody will quickly learn how to download and install mining pool software.

You can create your own pool, if you don't like the available pools. The source code is free and available for everyone.

The future of cryptocurrencies is the PoW

  • thank you for your answer. The difference between PoW and PoS is relevant and as you point out , PoS might be tested. Dec 13, 2017 at 8:03
  • Firstly, see: Why does Ethereum plan to move to Proof of Stake? for an overview. Dec 13, 2017 at 10:13
  • Secondly, the PoS implementation that Ethereum will use is arguably more secure than PoW. See Vitalik's A Proof-of-Stake Design Philosophy. (It mitigates 51% attacks, as well as 33% selfish mining - see Majority is not Enough: Bitcoin Mining is Vulnerable. Dec 13, 2017 at 10:14
  • Thirdly, there are many existing blockchain that's use PoS. For example, EOS/Bitshares uses dPoS (currently #11 by way of market cap). Neither Ripple nor IOTA use PoW (#4 and #6 market cap respectively). Value is arguably derived from speculation, not the consensus mechanism used. Dec 13, 2017 at 10:15
  • Lastly, people join pools because solo mining is no longer profitable. If you don't join a pool, and take a share of their earnings, you won't make any money. Running your own pool software, on your own, with no one else in your pool, is no different from solo mining: you won't make any money. Dec 13, 2017 at 10:16

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