Former Ethereum core dev lrettig says the economic arguments used to justify the network's overhaul oversold staking's benefits for network security, the environment and users pockets. MiningWeek, presented by FoundryServices.
, or MEV, has exploded in the wake of the Merge. MEV, which allows sophisticated actors with powerful computers to calculate arbitrage opportunities and bribe block producers to prioritize their transactions in order to capitalize on them, thrives in an ecosystem of hundreds of thousands of bribable validators.
In short, looking strictly at energy consumed by miners is short sighted. One must consider the total social cost of operating a network, including, now, the opportunity cost of $41 billion locked in Ethereum stake, which cannot be put to more productive social use, such as investing in high potential projects.This is another primary claim made by proof-of-stake proponents.
By contrast adversaries of proof-of-work networks have the advantage that, to render a 51% attack ineffectual, the network must also render all honest mining hardware ineffectual by changing the proof-of-work algorithm. This is a “nuclear option” because, while it would stop an attack by an adversary with powerful, specialized mining hardware called ASICs , it would instantly destroy the entire capital stock of all honest miners as well.
This argument doesn’t hold water for several reasons. Firstly, unlike in PoW, a cartel controlling more than half of the stake can silently, invisibly, and permanently capture the entire network. Secondly, an attack on a PoW chain is in the first place less likely than an attack on a PoS chain. It’s easier to attack a PoS chain because doing so doesn’t require scarce assets like hardware or electricity.
attack, which would produce a blockchain that for all practical purposes appears equally valid to the canonical chain.
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