♻️ [Analysis] Blockchain Without Waste: Proof-of-Stake - Fahad Saleh
Proof-of-Stake (PoS) and Proof-of-Work (PoW) are the two most prominent consensus mechanisms for permissionless blockchain protocols, and both Ethereum and Bitcoin use PoW to date. But no formal economic model of PoS has been published prior to this analysis, which outlines the conditions under which PoS blockchains generate consensus. Ultimately, this analysis concludes that a sufficiently modest reward schedule implies that a consensus equilibrium can be reached as soon as possible while precluding a "forking equilibrium", unlike PoW which does not require validators to hold stake in the protocol.
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