Vitalik Buterin Slams PoW Mechanism As Ethereum Merge Nears

Vitalik Buterin slams PoW mechanism, adds this criticism to the list.

Ethereum founder Vitalik Buterin has argued that PoW mechanism punishes miners with lower hash power.

[{"selector":"#anim-bde23fc5-196f-48ab-9f37-447f9a730ef3","keyframes":{"transform":["translate3d(117.82179%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1400,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d78ff36d-37b7-4e74-b773-799602c9cd60","keyframes":{"opacity":[0,1]},"delay":0,"duration":1400,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-783ed5e2-4637-46aa-b8b6-66b93f3bb6d5","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":1400,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

Replying to blockchain research lead at Colu, Udi Wertheimer, Buterin said PoW penalizes anyone who has a smaller percentage of hashpower than their percentage of the coin supply.

[{"selector":"#anim-3214b30d-a2ae-451f-99a0-d2ad5c36113c","keyframes":{"transform":["translate3d(-90.37328%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8cdb1b78-7e59-4bae-8756-72fe424a0388","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-330173ff-7d97-4042-9648-7c1605c1b179","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-63922633-688a-4ba8-b22e-713c2bfece2c","keyframes":{"transform":["translate3d(115.51156%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1400,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-efa81485-1566-4243-be65-d6d44ad145ed","keyframes":{"opacity":[0,1]},"delay":0,"duration":1400,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ec7b24a6-4f20-4380-9e4e-4312ff9f2043","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":1400,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

Udi Wertheimer had tweeted that PoS rewards aren’t “yield”, in fact they’re not even rewards, they’re just penalties to people who don’t stake.

[{"selector":"#anim-664efd10-9eed-439d-aa6b-20633701d25f","keyframes":{"transform":["translate3d(-91.74853%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e0350162-ebad-4372-8c25-915af3116864","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ea4dcb56-5e56-403b-af20-ed52b4bf5b42","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-7e19b725-bcc1-4c61-8902-da98eed5077c","keyframes":{"transform":["translate3d(116.17161%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1400,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-18ce26ba-2e6a-405d-b705-5b626e308d96","keyframes":{"opacity":[0,1]},"delay":0,"duration":1400,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-864ce8eb-1d04-4506-9547-46316130edfb","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":1400,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

According to Wertheimer, the yields awarded to stakers in PoS are, in fact, a way of penalizing non-stakers.

[{"selector":"#anim-1916c318-49fa-46a3-aa2b-c1685f8bb2c6","keyframes":{"transform":["translate3d(-92.14145%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ddd8ad2e-4b9c-4f08-a564-ea7446901295","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b6757f9c-49de-4039-a743-24c26d2d08ff","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-124d0528-9e9a-432a-93c1-9d8ac7a69b01","keyframes":{"transform":["translate3d(115.51156%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1400,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e4643e73-b488-43ac-8bad-e83b7b3f75b3","keyframes":{"opacity":[0,1]},"delay":0,"duration":1400,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b757a51a-c3ff-430d-9ca7-3933d4c156c6","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":1400,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

Buterin argued that if this logic is valid, then PoW penalizes anyone who has a smaller percentage of hashpower than their percentage of the coin supply.

[{"selector":"#anim-1c614b64-8f58-4d9c-b7db-b0b3adde1f58","keyframes":{"transform":["translate3d(-95.11202%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3d0fcd50-808c-4d49-be92-10078482f7a6","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-48600b73-3d33-45c8-9314-c776dde1d604","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-23c6556e-471d-47ef-b715-18f67607a730","keyframes":{"transform":["translate3d(115.84158%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1400,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9e1207cb-aa02-48b5-a5ec-a3b2478f2e3d","keyframes":{"opacity":[0,1]},"delay":0,"duration":1400,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2fdef9e3-5902-4052-b7a1-07ba9e95fcd4","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":1400,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

“Actually, it penalizes much more than that because profit < revenue, but you get the point,” Buterin added.

[{"selector":"#anim-0cd6943b-3027-40e8-af0a-2ef404fe126a","keyframes":{"transform":["translate3d(-91.74853%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-27d27e98-753a-4d8e-b41b-26f112f71558","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7076f18c-11e4-4b38-be3a-6361923b2b70","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-68893bd9-dd13-4d32-a083-f8f490b14e87","keyframes":{"transform":["translate3d(115.51156%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1400,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-62a1053f-b8ad-45b2-aed0-5ee14ccb6dc4","keyframes":{"opacity":[0,1]},"delay":0,"duration":1400,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2ac55113-812f-4b3b-97ea-871b04eaec3e","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":1400,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

Ethereum network is all set to shift from PoW mechanism to PoS mechanism this week.

[{"selector":"#anim-b1b1c3f8-c069-4c5d-a8b9-746a4444e7cb","keyframes":{"transform":["translate3d(-87.62279%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-bdf3a4dc-04eb-4453-a393-b129c1d17d30","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ae7a8708-673e-415a-b6d4-5b7e38d9dd64","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-ac2a0cf3-c5b6-4072-b81c-c8f86f53f5e7","keyframes":{"transform":["translate3d(115.51156%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1400,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5c10e6f1-7218-42fe-b656-571796548519","keyframes":{"opacity":[0,1]},"delay":0,"duration":1400,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5a62cc93-0776-4d6b-bcc7-969a383106fb","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":1400,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-f0ed9cd3-3c01-4175-acaa-38326603f8bc","keyframes":{"transform":["translate3d(-198.38715%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1200,"easing":"cubic-bezier(.2, 0, .8, 1)","fill":"both"}] [{"selector":"#anim-6a6268c9-41ed-456e-af30-259251e95a05","keyframes":{"transform":["rotateZ(-180deg)","rotateZ(0deg)"]},"delay":0,"duration":1200,"easing":"cubic-bezier(.2, 0, .5, 1)","fill":"forwards"}] More Crypto Stories...