Proof of Stake Vs. Proof of Work: Which One Is ‘Fairer’?
This is the first of two articles providing a deeper dive into the eternal debate between the Proof of Stake (PoS) and Proof of Work (PoW) consensus algorithms. Proponents of PoW in Monero and Bitcoin often argue that the energy used in mining is not ‘wasted’, as it is necessary to ensure the resilience and decentralization of the consensus algorithm.
PoS proponents agree that a certain aspect of extra-protocol social coordination and consensus is necessary to maintain its security, but they argue that PoW systems ultimately rely on social consensus as well. Summarizing his position on the wealth disparity gap in blockchain economics, he said: Harvey argues that the two systems have different economic natures, focusing on the business operation aspect of PoW — where miners can have negative profit, get outcompeted or fail entirely.
