101–110 of 609 posts
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Instead you just need a massive amount of eth
Wouldn't those with ownership in a system be best trusted with the self-interest of such a system? That seems to be the best alignment of incentives.
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I think it will become centralized, but not in the way that you think. We're likely to see base-layer transaction censorship, since nodes are no longer allowed to disagree with each other (or they'll be slashed), and far more than 33% of staked value is in the USA (and subject to OFAC compliance). I explained in more detail here: https://news.ycombinator.com/item?id=32532604
Who gets to decide if something should be slashed
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Who gets to run a slasher node and who gets to agree that its valid to slash a block?
I don't know the specific rules for Ethereum, but in general PoS systems, anyone can slash. All you have to do is submit two different headers for the same block signed by the same validator. This proves the validator is cheating. The person who submits the proof may get to keep some of the validator's slashed money, which is a good incentive to run slashing nodes as this can amount to thousands of dollars per slash,…
To whom? Who gets to decide to slash the funds?
I caught you cheating and can prove it. You don't give a shit and control 51% of the network. How do you get punished?
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This is not the question I am asking. You can have many people putting up their 32 ETH. Sure that's "decentralized". But what if most of the stakers collude to double spend tokens? My understanding is that there is an additional layer of validators that have the power to force them to give up their stake as a penalty. Hence "proof of stake". And that there are very few validators. And it's really just the ethereum fo…
What if most of the miners collude to double spend tokens? The problem is the same. The difference is that proof of work automatically tends to centralisation due to its economy of scale: it's cheaper to add one more miner to your pool if you already have a big mining operation, but staking 1 eth is always staking 1 eth. Both PoS and PoW have the problem where you can buy out the majority if you have the power to do…
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Who gets to decide if something should be slashed
It's determined by the majority of validators. There's two ways this can go - either the majority of validators enforce OFAC sanctions, effectively giving OFAC authority over the entire Ethereum network since validators who go against it will be slashed, or the majority of validators don't enforce sanctions, in which case validators with any presence in the US must put themselves in legal jeopardy to avoid getting sl…
Is it incorrect to say that ethereum is now entirely centralized with some extra steps? Like, you have this proof of stake thing, but the only reason it works is because there's just a small number of validators, which is just going to be the ethereum foundation and friends. edit: putting this at the top because nobody is responding on topic. I am NOT talking about the class of people who stake 32 eth to validate nod…
Is it incorrect to say that ethereum is now entirely centralized with some extra steps? Like, you have this proof of stake thing, but the only reason it works is because there's just a small number of validators, which is just going to be the ethereum foundation and friends. edit: putting this at the top because nobody is responding on topic. I am NOT talking about the class of people who stake 32 eth to validate nod…
Yes, it is correct. It was already much more centralized than for instance bitcoin, due to the difficulty in having a validator node, but now it is just managed by the big holders and that's that. Furthermore, they will censor transactions according to US laws at least, and if you try to validate and not censor, you will get your staked coins taken from you by the protocol (as opposed to PoW, where you just fail to g…
> and if you try to validate and not censor, you will get your staked coins taken from you by the protocol (as opposed to PoW, where you just fail to get your block in the chain)
Is outright false. It is the same as PoW. You choose what transactions you include in your block. So some people may choose to not include some transactions (Ethermine is already doing this on PoW with Tornado Cash). But there is no mechanism that slashes your staked coins because the other validators didn't like what transactions you included. At most your block will not get attested. Slashing can only happen for other reasons (proposing twice, attesting twice, attesting something that surrounds something else).
PoS is in fact even more resistant because in PoS you can kick out the malicious validators by doing a social fork that slashes their stake. In PoW if 51% of miners are malicious there's nothing you can do, you can't slash their hardware.
Is it incorrect to say that ethereum is now entirely centralized with some extra steps? Like, you have this proof of stake thing, but the only reason it works is because there's just a small number of validators, which is just going to be the ethereum foundation and friends. edit: putting this at the top because nobody is responding on topic. I am NOT talking about the class of people who stake 32 eth to validate nod…
Let's say it like this: In the near future the rules are made by the people with the most ETH and soon after the most ETHs will be earned by the people who make the rules.
How will this affect the revenue and stock prices of major hardware manufacturers? Particularly GPU manufacturers? If the price of GPU's drop due to a large second hand market opening up, would GPU manufacturers be hurt in any way?