Work is Timeless, Stake is Not

Proof of Stake is Proof of Temporary Stake

Proof-of-Stake is a misnomer. The correct, fully descriptive name for Proof-of-Stake should be Proof-of-Temporary-Stake (PoTS). This name is more accurate because it captures the time element, or lack thereof, of PoS.

  • 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

Special thanks to Vijay Boyapati, Bob McElrath, LaurentMT, Nic Carter and Steve Lee for their valuable feedback.

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