Vitalik Buterin, the co-founder of Ethereum, recently spoke about whether there were other projects inside or outside the blockchain ecosystem that were using Proof of Stake [PoS]. He also the key difference in Ethereum’s Proof of Stake [PoS].
Buterin started by speaking about other Proof-of-Stake projects, quoting the example of Tezos as a simpler version of PoS. He further added that PoS “is fairly popular”, however, the PoS which are present in the space is “fairly simplistic”. The co-founder stated that the Foundation is planning on launching a “much more powerful” Proof of Stake in a lot of ways comparison to others.
He further elucidated on how Ethereum’s Proof-of-Stake is going to different than the “simplistic” versions. He said that the simplistic version “basically replicate” the structure of the PoW, wherein the randomness of the mathematical puzzles that people solve with computers is replaced with randomness that gets virtually simulated inside of the blockchain.
“So, you still have structure where get a block and a block on top of a block and on top of a block. And that kind of structure is nice because it’s very simple and very little overhead, but it’s also a terrible because it takes a long time for blocks to come to consensus”
For this, Buterin quoted the example of Bitcoin, wherein there has to be six confirmations which would approximately take an hour for the confirmation of a transaction, adding that Proof of Stake chains “don’t work in a similar way, they basically inherit those weaknesses.”
He went on to say:
“Our approach to proof of stake combines together some of the insights from these older chain based goals of proof of stake with Byzantine false theory […] our idea is to take those algorithms. First of all kind of merge them together with proof of stake and second, we came up with an algorithm that has some intermediate properties between the properties of the older BFD algorithms and chain based PoS.”
Butern further stated:
“So in our case, we have a version of this algorithm that takes longer time to come to a final consensus, but still not too long […] and the benefit that this gives you is that within something like five seconds you get a sort of soft agreements that this block is probably part of the history forever. And then in a couple of minutes that soft agreements operates to a final finale, it’s not going back”
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