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The Bitcoin analyst, Jimmy Song, wrote a tweet claiming that proof-of-stake doesn’t solve the Byzantine General’s problem. The Byzantine General’s problem is generally when a situation arises where dispersed parties cannot reach a consensus without a centralized party to overlook it.
Proof-of-stake does not solve the Byzantine General’s Problem. Therefore, it does not provide decentralized consensus.
— Jimmy Song (송재준) (@jimmysong) July 2, 2022
If you didn’t understand this tweet, then you are completely unqualified to make any claims about proof-of-stake.
Song stated that PoS can’t provide a decentralized consensus. Ethereum founder, Vitalik Buterin, replied to the tweet, disagreeing with his argument.
If there’s a long-established tradition of people debating A vs B based on deep arguments touching on math, economics, and moral philosophy, and you come along saying ‘B is dumb because of a one-line technicality involving definitions,’ you’re probably wrong.
While many commented on Vitalik’s tweet agreeing that proof-of-stake definitely works, the founder of Blockstream and hashcash, Adam Back, had a different opinion. He stated that the entire argument about whether PoS works or not is based on the purpose for which it is used.
It depends what purpose it works for. Don’t forget the context, some PoS coin promoters spend time FUDding PoW to sell their coins, and go as far as to claim PoS is “better” than PoW, and we all know why PoW is needed. PoS fails at those reasons, and so doesn’t work (for purpose)
— Adam Back (@adam3us) July 4, 2022
Adam Back suggested that even if PoS can solve the Byzantine General issue, “it is still undesirable as it replicates the problems of fiat systems.” He stated that wealthy groups have policy influence and can take control of others to gain favors.
Even though this argument is quite debatable, the benefits of proof-of-stake can’t go unseen. Ethereum’s Merge, which is set to happen very soon, will witness Ethereum’s upgrade from proof-of-work to proof-of-stake. This upgrade will aid in reducing energy consumption by 99% and reduce the negative impacts of proof-of-work.