Can someone explain proof of stake to me? Wouldn't ether

I'm asking this here because I don't want to ask some ether shill and get a biased answer.

do you mean Ether, or Ether Classic?

>>1412041
Do you know where you are?

>>1412060
They are basically the same code but with different states so either or.

>>1412039
In POW the blockchain is maintained by those with the most computing resources.

In POS the blockchain is maintained by those with the most coins ("stake" in the coin).

POS encourages hoarding but I don't see how this results in the price continually dropping?

>>1412091
Coins are produced exponentially (the more you have the more are produced). This would cause the price of each individual coin to drop.

Another way to look at it: if the united states allowed a one time trade of one dollar for two dollars no one would gain any actual wealth (just the dollar would half in purchasing power). I see POS as this exact trade only periodically.

I fundamentally don't understand how POS can create new wealth from printing new ether for ether holders. Does the network eat up ether to run software or something, making 2 ether more valuable than 1 ether?

>>1412102
>Coins are produced exponentially

Not necessarily.

The coin issuance model is independent of which "proof of" algo you choose.

In Bitcoin 12.5 new coins are minted every 10 minutes. It doesn't matter if 1 guy is GPU mining in his basement or thousands of Chinese are ASIC mining. Rising computational power has no effect on the supply of coins. POS can be modeled the same where the total supply of coins does not affect the issuance rate, just the difficulty of mining.

In ETH the supply will be unlimited but beyond that we don't know the exact issuance model until POS is actually introduced.

>>1412102
>>1412124
vitalik has floated the idea of small amounts of inflation e.g. 1-2%

that is an extremely insignificant amount. what will matter will be how much use the blockchain gets

if 10% of world gdp is stored on the blockchain by 2025 like some banks suggest, there would probably be enormous returns to be made from being a validator. you're not going to be able to store different asset classes with buttcoin. ethereum is the only serious general purpose public blockchain project right now

>>1412102
>I fundamentally don't understand how POS can create new wealth from printing new ether for ether holders. Does the network eat up ether to run software or something, making 2 ether more valuable than 1 ether?

it doesn't create new ether for all ether holders. it only creates new ether for the validators. the network doesn't "eat up" or burn/destroy ether. people will pay validators with ether to run code for them

>>1412064
Lol

>>1412102

Actually coins are usually created logarithmicly

The guy who was going to 51% attack ETC completely jumped ship:


Chandler Guo:
A lot of exchanges have added ETC and there's already been a high turnover of who owns ETC. Right now an attack on ETC would definitely harm innocent people. Countless numbers of ETC holders would be harmed financially. Right now an attack on ETC by 51pool.org is the equivalent to the DAO hacker. Whoever does bad/evil, i'll attack. Today i will turn on my 120gh for the ETC chain to protect ETC"

>>1413862
source?

>>1413862
lol prob he tried a 51% attack and failed but the etc mining is more profitable than eth mining do he's just keeping his rigs on I bet

File: file.png (224KB, 639x1136px) Image search: [Google]

224KB, 639x1136px

>>1413984

My gut tells me ETC holders are about to get kiked over, stay safe guys.

>>1414003
Amazing how Satoshi Nakamoto's defense against attackers extends even beyond BTC and into other cryptocurrencies. An attacker will follow his best interest. And attacking an existing blockchain, rather than mining it, is the less profitable option.