Proof-of-Stake Is a Defective Mechanism

Vicent Sus

Paper 2022/409

Proof-of-Stake Is a Defective Mechanism

Vicent Sus

Abstract

Proof-of-Stake (PoS) algorithms, implemented as foundational components of the consensus mechanism of distributed ledgers, are defective cryptosystems by nature. This paper presents intuitive arguments for why PoS, by trying to improve the energy efficiency of Proof-of-Work (PoW) when implemented as a Sybil control mechanism in distributed ledgers, introduces a set of significant new flaws. Such systems are plutocratic, oligopolistic, and permissioned.

Metadata

Available format(s): PDF
Publication info: Preprint.
Keywords: blockchain consensus proof-of-stake distributed ledger cryptocurrencies
Contact author(s): visus @ uoc edu
History: 2023-11-22: last of 4 revisions; 2022-03-31: received; See all versions
Short URL: https://ia.cr/2022/409
License: CC BY

BibTeX

@misc{cryptoeprint:2022/409,
      author = {Vicent Sus},
      title = {Proof-of-Stake Is a Defective Mechanism},
      howpublished = {Cryptology ePrint Archive, Paper 2022/409},
      year = {2022},
      note = {\url{https://eprint.iacr.org/2022/409}},
      url = {https://eprint.iacr.org/2022/409}
}