Aug 16, 2022 • 4M

Letter #138: The Nightmare Continues For Proof Of Stake

Read now to learn how crypto custodians may turn out to be Proof of Stake's worst nightmare.

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Dear Readers,

Bitcoin and the community behind it wade through a lot of controversy in their quest to improve financial self-sovereignty for themselves and for the world. Bitcoin is a very new technology after all, and there’s unfortunately a lot of misinformation (read: FUD) that goes around.

One of the more controversial takes centers around claims from critics that Bitcoin should migrate off of its current consensus mechanism, Proof of Work, and onto a new consensus mechanism, Proof of Stake.

This article isn’t meant to be an explainer about the merits of PoW (see here for that). Nor will we cover ALL the weaknesses of PoS (see here and here for two examples). But recent events have raised another glaring concern with the Proof of Stake governance model that simply can’t be ignored.

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