Summary
TLDR: The article discusses the shift from proof-of-work to proof-of-stake in cryptocurrency, highlighting the advantages of proof-of-stake on a second layer. It addresses arguments against proof-of-stake, such as economic centralization, and explains how these issues can be resolved with a second layer implementation.
Key Points
1. The designer of spiderchain was initially a proof-of-work maximalist before realizing that proof-of-work on a second layer doesn’t make sense.
2. In 2022, when Ethereum merged to proof-of-stake, there were concerns raised by Bitcoiners, including Jack Dorsey, about the insecurity of proof of stake. However, these concerns can be addressed by building with proof-of-stake on a second layer.
3. The economic argument for proof-of-work vs proof-of-stake highlights the decentralizing trend of proof-of-work due to value leaking out of the system, while proof-of-stake has a centralizing trend as stakers receive a larger portion of the total assets over time.