Questions tagged [proof-of-stake]

proof-of-stake is a method by which a blockchain network aims to achieve distributed consensus by asking users to prove ownership of a certain amount of an asset.

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126
votes
5answers
42k views

Why does Ethereum plan to move to Proof of Stake?

The initial version of Ethereum (Frontier) uses a Proof of Work based consensus algorithm, but I see that there are plans to implement a Proof of Stake based consensus algorithm called "Casper" in a ...
33
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3answers
37k views

How do miners profit post-PoS, if at all, how will new miners get their start, and who will execute the EVM byte code (and why)?

I've been following the release of Casper/PoS closely, and I'm curious about a few details. How will miners make money (even if GPUs are less valuable)? Are spare compute resources (say RAM, CPU) ...
7
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2answers
4k views

What is GHOST and what is its relationship to Frontier and Casper?

As high-level as possible without losing important meaning, what's the intuition behind GHOST? How is it currently implemented in Frontier? What will be different with GHOST in Casper?
79
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6answers
159k views

What is the total supply of Ether?

In Bitcoin, the total supply is capped at 21 million BTC. Is the total supply of Ether capped? How much will be mined before the Proof of Stake (POS) transition, and how will POS affect the issuance ...
66
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5answers
50k views

What's the difference between proof of stake and proof of work?

The Ethereum frontier network currently uses a proof of work (PoW) consensus algorithm, while a future version of the network plans to utilise a proof of stake (PoS) algorithm instead. What's the ...
38
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3answers
15k views

How does the Casper proof of stake algorithm work?

Ethereum plans to move to the Casper proof of stake algorithm in a future version of the network. What are the details of that algorithm, and how does it compare to previous Proof of Stake consensus ...
7
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1answer
3k views

Will a GPU help with Proof-of-Stake?

Will a GPU be required to do proof of stake as a full node? Will it help me be more profitable? Will a highly available network connection be worth more than having a beefy GPU? What if I don't stay ...
25
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2answers
19k views

What exactly is the Nothing-At-Stake problem?

What exactly is the Nothing-At-Stake problem in Proof-of-Stake consensus networks? While I understand what the nothing at stake problem means, I do not really understand the security implications. ...
12
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1answer
2k views

What if difficulty bomb makes mining impossible before POS release?

As mining difficulty raises and POS is still not ready, I was just wondering if POS release can still be on time compared to the difficulty bomb giving too high difficulty. In simpler words, is there ...
10
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2answers
4k views

What is the Long-Range-Attack in Proof-of-Stake?

What is the Long-Range-Attack in Proof-of-Stake? And how will this vector be mitigated with the Casper Proof-of-Stake implementation?
12
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2answers
1k views

In Casper PoS, what is a finalised block?

Vitalik talks about block finalisation here, and Vlad also talks about it here. What is a finalised block? How long does it take to finalise a block? What are the security guarantees of a finalised ...
6
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2answers
884 views

Is it possible to change Proof-of-Work into Proof-of-Stake consensus algorithm of an on-going Ethereum private chain?

I have a on-going small private chain could be seen here. I have only few nodes, hence difficulty is pretty low and average block time is high (around a minute). So it can easily attacked with someone ...
24
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3answers
9k views

What is a Shard?

Proof of Stake brings new concepts to the Blockchain ecosystem. In the dictionary "Shard" is defined as "A broken piece or fragment, as of pottery or glass".
6
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1answer
2k views

What will be the transaction fee when Ethereum shifts to PoS?

Ethereum plans to shift from PoW to PoS and there'll be no mining involved anymore. The incentive for peers to participate in the network and confirm the transactions will be the transaction fee. How ...
2
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0answers
10k views

Is switching to Proof of Stake (PoS) makes GPU mining worthless? [duplicate]

Is switching to Proof of Stake (PoS) makes GPU mining no longer available?
17
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2answers
3k views

What is casper? [duplicate]

I see that Vitalik and Vlad are working on Casper. As far as I understand, casper is the new POS mining algorithm. Why is it better than bitcoin's POW? I understand it's environmentally friendly, ...
16
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1answer
4k views

Can Proof of Stake (PoS) improve the number of Transactions per Second?

Currently Ethereum is using Proof of Work (PoW). From my understanding there is a limit of time between blocks for two reasons: Part of that time between blocks represents the time to solve the PoW ...
13
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1answer
560 views

Are light nodes possible in Casper?

My understanding of light nodes is they need PoW in the block headers. That PoW proves that $x amount of energy has gone into securing that chain. With PoS, the proof that $y is securing the chain ...
12
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3answers
9k views

Will a higher stake make more money in PoS?

Since I'm very new to this I'm just going to assume I'm getting it wrong. But here it goes anyway... The higher my stake, the more money I make. This is my raw understanding of how proof of stake ...
11
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3answers
1k views

What are the major risks of Ethereum moving to Proof of Stake?

There has been discussion about the motivations and benefits of moving to Proof of Stake. For a risk-benefit analysis of moving to Proof of Stake, what are the major risks?
10
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4answers
3k views

What are the scalability benefits of PoS vs PoW?

This accepted answer claims that one advantage of PoS vs PoW is that some scalability problems can be addressed more easily with PoS What are those scalability problems? What are the scalability ...
8
votes
1answer
6k views

When will Ethereum switch to Proof of Stake? [closed]

What is the latest estimation of when will the switch to PoS happen? Last time the question was asked about 6 months ago, the answer was mid-2016, which is just around the corner. https://...
7
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1answer
293 views

Can you (as a node) manually choose what block to bet on in Casper?

Ethereum plans to move to the Casper proof of stake algorithm in a future version of the network. However, as nodes are betting on which block will be produced next, does that mean (as a node) you can ...
6
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1answer
668 views

Block header structure change under Proof of Stake?

The yellow paper describes the below block header structure: This includes difficulty, beneficiary, mixHash and nonce values. Presumably these will be redundant under Proof-of-Stake. How will the ...
6
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2answers
2k views

Ethereum POS economics question about gravitating all ether supply to stake

Please, dispel my doubts about POS, miners rewards and too strong incentives to participate in it that could lead to almost total supply of ether locked in stake. So, we have: Et - total Ether ...
4
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2answers
568 views

What property makes Proof of Stake easier to apply in permissioned blockchains?

There are a number of efforts driving towards the transition from the current proof-of-work towards proof-of-stake (more info here). Meanwhile proof-of-stake is already in use in some permissioned ...
2
votes
1answer
712 views

What does PoS formula mean in Vitalik's blog post?

I don't understand what exactly the PoS formula means in Vitalik's blog post On Stake on the Ethereum blog: SHA256(prevhash + address + timestamp) <= 2^256 * balance / diff Why do you need to ...
17
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1answer
1k views

How does Casper solve the “Nothing at Stake” issue?

One of the criticisms of proof of stake is that stakers can vote for multiple blockchain forks with only a trivial cost. I believe NXT solves this by not giving out a mining reward, so that the ...
8
votes
2answers
614 views

How does betting on a block work in Casper?

Betting on a block is betting money that effectively says something like: "I believe that this block has at least a 60% chance of being true." Q1. Once a bet is made, is it possible to change the ...
6
votes
1answer
828 views

How are block proposals made in Casper?

A blog post says this about block proposals in Casper: A NXT-style random number generator is used to determine who can generate a block at each height; essentially, this involves taking missing ...
4
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2answers
163 views

When a bonded node loses a bet who gets the ETH?

In Casper Proof-of-Stake, a validator needs to be a bonded node: it puts up a security deposit that can be lost if the validator misbehaves. When a bonded node misbehaves, who receives the lost ETH?
3
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2answers
333 views

Will not a PoS implementation converge in a much less wealth equally distributed system?

With the current trends of prices in crypto and the long term vision supported by the community (HODL!), the implementation of Proof of Stake could eventually derive in big ETH stakeholders getting ...
3
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1answer
1k views

Why are coins at risk when honestly staking?

It has been repeatedly written that staking nodes should buy DDoS protection or be at risk of losing their coins. Can someone explain why an honest staker is at risk of losing his coins in case it ...
2
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1answer
2k views

What will the ETH inflation rate be after PoS is released? [duplicate]

Has the Proof of Stake emission schedule been decided yet? What will be the rate of inflation? Is 2017 for the end of PoW still the best estimate?
2
votes
2answers
240 views

What is the network overhead of Casper?

In Bitcoin the PoW mining has very little overhead in terms of bandwidth. The miners simply need to produce the PoW, which I believe is 32 bytes per 10 minutes. In Casper I understand every validator ...
2
votes
1answer
3k views

Are miners eliminated in Proof of Authority?

According to this blog post by Vitalik on April 1st 2017, Ethereum will move from Proof of Work to Proof of Authority in 2018. He states: We have decided that the problem is too hard, and secure ...
1
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1answer
145 views

Delegated POS (DPOS) vs Proof of Stake (POS): Specified Differences

Delegated POS (DPOS) vs Proof of Stake (POS) -- May I know what are the specified Differences?
1
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1answer
149 views

Who can participate in Casper?

From what I understand, non-validators will feel benefits from the change to casper. However, is it only validators that can actually participate in Casper? Is it correct that if you have etehreum in ...