[Analysis] Proof of Stake’s security model is being dramatically misunderstood - Viktor Bunin

Since Proof-of-Work (PoW) is the more understood model for securing blockchain networks, its security characteristics are often compared to Proof-of-Stake (PoS) systems. However, Viktor Bunin argues that PoS networks face dramatically different security threats compared to PoW, and “assuming PoW attack vectors are rational in PoS prevents us from seeing the real risks and attack vectors.” Bunin evaluates the attack costs of both PoW and PoS and, in the process, questions the practicality of acquiring a large token set to attack a PoS network while managing to realize a profit.

Bunin recognizes PoS designs aren’t perfect and takes the time to outline the more pressing challenges facing staking-based security models, such as increased theft incentives, “slashing sabotage”, governments taxing PoS tokens and staking those proceeds, and network centralization. It is important to note that some of these risks, especially network centralization, may increase “with on-chain, token-weighed governance because it risks becoming a plutocracy.”