🔌 [Analysis] Electric Money - LaurentMT

LaurentMT asks, is Bitcoin's proof-of-work (PoW) worth the cost? While at first sight alternative models, like centralized and federated parties, offer more efficiency, they also allow incumbents to maintain their dominant position and enforce arbitrary decisions. Proof-of-stake (PoS) or delegated proof-of-stake (DPoS) are often touted as alternatives to this issue but they too allow incumbents to prevent a new actor from becoming a leading player. PoW, on the other hand, is an open system, where competitive position depends on energetic, financial, and technological resources. Because of this, PoW creates an open and dynamic playing field. Efficiency isn't an absolute metric and any efficiency gain in alternative systems can sacrifice the open nature of PoW, making it the most 'efficient' solution we have.