Work is Timeless, Stake is Not

Proof of Stake is Proof of Temporary Stake

  • Energy expended per block not only secures the UTXOs belonging in that block but also retroactively secures all global UTXOs that occurred in past blocks. The reason for this is because it would be impossible to revert past UTXOs without reverting the current block first. Each new block effectively “buries” all existing UTXOs under its weight.
  • Investment in specialized mining equipment, in essence, represents the potential stream of rewards earned in the future, discounted back to the present. When a miner invests in a new piece of mining equipment, it is akin to buying a share of stock that pays regular dividends. What that means is that mining hardware in totality roughly represents potential energy expenditure of future blocks.
Ledger accumulates past work; Mining hardware accumulates future work.

Acknowledgments

--

--

--

https://twitter.com/hugohanoi

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Curious case of Lido Finance

Top 10 Ways to Earn Bitcoin in 2020

A method of organizing a decentralized futures transaction on the Fusion blockchain.

My Biggest Crypto Investing Mistake of 2022

In this article, we will look at the Cronos network and its key indicators that this network has…

Permissionless Shelter, On & Off Ramps, and Financial “Unpersoning”

Bitcoin vs. Cryptocurrency

FalconSwap

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Hugo Nguyen

Hugo Nguyen

https://twitter.com/hugohanoi

More from Medium

GBC.AI looks back at a packed and eventful 2021

Ferrum’s highly secured multi-chain token bridge hits $138 million in total transacted volume

Crypto — Are we really still early?

Russian-Ukrainian War, Coinbetter Raises New Thoughts on the Future of the Crypto Industry