Will Proof of Stake Lead To MASSIVE Centralization!? Ethereum, Tezos & Cardano
Proof of stake consensus is getting implemented by major blockchains like Ethereum, Tezos & Cardano. Will this lead to mass centralization among validating nodes? Could centralization get worse than proof of work ASIC mining centralization? Centralized exchanges will be staking proof of stake tokens from user’s deposits, resulting in the exchanges owning a majority of the block producing nodes. What can be done to stop this growth in power by large exchanges? Tune in to find out!
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⏰ Time Stamps ⏰
00:08 Introduction: The Chico Zone & Proof of Stake
01:12 Ethereum, Tezos & Cardano Are Moving To Proof of Stake & Have Large Market Share
02:20 Large Exchanges Will Staking User’s Deposits Thus Controlling Validator Nodes & Influence Over The Networks
03:15 There Is Mining Centralization With Proof of Work, But WIll It Be As Bad As Proof of Stake?
04:04 Exchanges Are Moving On Becoming The Largest Holders of Proof of Stake Coins: Tezos, Ethereum & Stratis
05:36 Who Can You Blame?
05:57 What Can Be Done To Stop This? Decentralized Exchanges!
06:28 Conclusion
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⏰ Time Stamps ⏰
00:08 Introduction: The Chico Zone & Proof of Stake
01:12 Ethereum, Tezos & Cardano Are Moving To Proof of Stake & Have Large Market Share
02:20 Large Exchanges Will Staking User's Deposits Thus Controlling Validator Nodes & Influence Over The Networks
03:15 There Is Mining Centralization With Proof of Work, But WIll It Be As Bad As Proof of Stake?
04:04 Exchanges Are Moving On Becoming The Largest Holders of Proof of Stake Coins: Tezos, Ethereum & Stratis
05:36 Who Can You Blame?
05:57 What Can Be Done To Stop This? Decentralized Exchanges!
06:28 Conclusion
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Watching in 2020 to know why chicocrypto never talks about Tezos 🙂
Wow you talk so much shit lool
Yes. Chico crypto is amazing. I'm his Monkey fan. Stake this 100+% roi with defi finance coming soon
No electricity required
https://youtu.be/oDvVmsuk0CM
8000 tezos to stake is way too high for the average user. Lower it and it will make it more decentralized. Right?
Hey Chico! Love your channel man. I think you should do an update on Tezos. The decentralization still applies even to large exchanges because of their address. We can track the Tezzies that they are given and they shall be distributed evenly amongst the network to avoid monopolization aka a centralized system. I did research in Tezos and found out that it’s actually a solid project as are DeFi projects as well like Enigma and iExec. Anyhow, keep up the solid work exposing the frauds and highlighting the facts! Cheers 🍻
Why does this guy sound like a robot?
Haha the Chico zone
since everyone will stake 32 eth at such low price it will be much more decentralized . Stratis and ethereum are different.. People love eth they would stake it n enjoy lifetime money flow forever
Doge or Die is my motto
very informative
Maybe more exchanges need to follow the stakebase.com model?
A lot of information was provided at the IOHK Summit, please check:
https://forum.cardano.org/t/recap-iohk-summit-2019-keynote-by-charles-hoskinson/22584
Charles already said that Shelly will be 2-4 month away , they are gona have 1200 Stake pools so kinda stilly to say that it will be centralised and that we have no idea when shelly is being released. #Facepalm #weakjournalism
i bought stratis 2 days ago and marketcap dropped by 30 millions i lost 1/5 of my deposits.
fak my stratis ??? it was suposed to raise
should i keep on stratis or to buy ethereum i dont know what to do?
any opinion?
do you think stratis is gonna drop to 50 cents in the next week?
Buterin is such a creep, I wouldn't leave children alone in the room with him, especially considering his deleted child porn tweets.
massive centralisation already exists through the privately controlled cryptocurrency index.
zentachain is the next big thing.
PoW is a a backward old way of doing things otherwise ethereum wouldn't be moving towards PoS. There are different types of PoS, EOS dPoS is quite centralized and has voting connected with its ownership whereas ethereum will not run on a voting system to keep it honest – so I'm not sure about this guys theory about holding ethereum to gain influence over the network – that may apply to EOS but not all the PoS coins – Cardano I'm not sure about how it works but I know both ethereum and it are trying to be as decentralized as possible – ethereum is going to use sharding to remain decentralized while still attaining high speeds. What will be more decentralized PoW or PoS is open to debate – but what is certain is that PoW wastes a lot of money in specialized equipment and it uses high amounts of electricity – not to mention its weaknesses in scaling – it seems unlikely that PoW coins will ever have much speed even with second layer solutions which are usually highly centralized themselves.
OMG I watched a video of somebody who doesn't know what stakeing is.
For example if you stake Reddcoin RDD it means you get paid 5% of your deposit. So every node get his fair share of 5% per year. And the cost of a Node is way cheaper than mining so everyone can make profit if you sake a certain amonot of coins.
Road to Roota sent me 👍
Fud! Come on Chico… See the future: staking… Diesel is over…
Vitalik and I were twink lovers before he became famous. Oh, those were the days.
good one.
But that's the thing, there'll always be thousands of exchanges, and that doesn't compromise decentralization, same can be said for miners.
If a user TRUSTS a party X or Z (centralized exchanges), hey'll be ok in delegating their own voting/staking power to the exchange, and I don't see a problem there.
There'll be all types of ppl for all tastes of markets.
I agree it'll give'm more power, that's for sure.
But at the end, if you are staking via centralized exchange and dont like it, one can always go to other ones or staking by itself if knowledgeable enough.
I think PoS is a much more elegant way of dealing with trust, but that was a good exercise.
Cheers Chico from Brazil!
SOLVE coin anyone?
Algorithms like Proof of Capacity (Proof of Space) solves the Centralization-problem of POS and the Energywaste-problems of POW.
yes pos = centralisation thats why the creator cfb stepped away and moved on to iota 🙂
Tezos is less centralised and can be upgraded, long term it will bring Ethereum like returns.
No, it won't. No more than mining farms can. People with larger amounts of money always have the advantage to capitalize more, period. That doesn't change rather it be in them buying up millions worth of miners or buying up coins to stake. Further, someone owning the most coins doesn't then make is centralized as the coins themselves were never the purpose of decentralization, but rather the reward for supporting the decentralized network. The network is and always will remain decentralized and transactions can and will always be performed without an intermediaries approval. You have no idea what you're talking about and it shows more and more with each video. You also don't seem to understand that POS can't be 51% attacked in the same manner as POW. POS doesn't rely on hashing power to validate nodes, all active nodes validate transactions not only the nodes that earn the reward. If a staking node were to go rouge and disagree with all other nodes on the network the rewards would be orphaned and the staking node banned from the network peers list until it were back in compliance with all other nodes.
This video just made me more bullish on digibyte.#DIGIBYTE #DGB #1blockchain
Cheers ! From the Great white North…….GTA!
I came here to see what it's all about. What?! No closed captioning? bad news.
Cardano will have 1000 stake pools, way more decentralized than btc. ETH PoS will not work and will be centralized. The others are already centralized, so no chance
Dude why do you never talk about EOS? They are the daddy of POS.
Charles already said Shelly /staking is in 3-4 months, he confirmed it yesturday on his YouTube channel
Would it be possible to develop a consensus mechanism that rewards a Node in relation to it's Ping?
PoW and PoS are both vulnerable to centralisation of the network (Be it through capatalisation, deliberate bad actor action or apathetic good actor inaction). To combat Hash Wars & Mega Stake Pools, is it not logical to explore Consensus which, by design, eliminates the Monopolistic desire.
PoP or Proof-of-Ping would measure the blockchain equivalent of Internet Control Message Protocol (ICMP) echo request time and use this as a key function of the selection algorithm.
At first this may sound counter productive because rewards will reduce as the network grows. But remember, so does PoS & PoW consensus systems. The effect of any network growth is correlated with network value and this added value offsets the reduced rewards. The economic model would have to take this into consideration when implementing fundamentals such as total supply, transaction fee scaling and validation selection. But all things considered… I can't see why this approach would not solve/combat the problems documented in this video.
Any thoughts?