Looking back on this year, concepts such as DeFi, DAO, and NFT broke out. In essence, its fundamental logic lies in the PoS consensus mechanism. The diversified expansion of pledges led to the explosion of DeFi.
Although it is good, its drawbacks are also obvious. I have analyzed the advantages and disadvantages of some proof mechanisms and specific explanations for you before, so I will not elaborate on the basic concepts too much. Today I want to start from the actual scenario of PoS Let me explain.
The POS mechanism itself is a joint-stock company, and everyone can hold it, but the people who hold the final meeting are those who hold a relatively large share. They can participate in the governance vote to decide whether the proposal is passed, and the small shareholders have to choose their trusted major shareholders , Pledge your own shares and wait for the income.
Everyone can wonder if the projects that mainly use the POS mechanism are like this?
After the project is completed, the corresponding node recruitment plan will be opened simultaneously to obtain more institutional investors and technical supporters, that is, nodes. They pay more attention to long-term value and help more retail investors to participate in it easily. .
It itself is a better solution for retail investors unable to participate in the PoW mining model, but it is also an indicator that evaluates whether the node is competent based on the number of pledges, and then determines whether to continue to provide services. In this case, it will inevitably Vicious competition is caused, and the node party receives tokens from the secondary market instead of continuously working through technical means. When the currency price drops, this becomes the most painful point of the node party.
This is the first problem of the PoS consensus mechanism.
From the Ethereum 2.0 pledge analysis chart that everyone is paying attention to, it can be seen that the higher the pledge amount, the lower the profit. As the price of the currency continues to rise, the cost of participants is getting higher and higher, and the later the gains become less. When the price of the currency drops, investors who enter the market afterwards will even reach a situation where the profit and loss are imbalanced. In fact, looking at it in detail, all liquid mining is just an upgraded version of deduction. No matter how you modify it, this factor cannot be changed.
This is the second biggest problem of the PoS consensus mechanism.
Many people’s voting rights are meaningless. If you encounter a few big money holders, they will decide the final voting proposal and become the object of node contention. It is just the amount of funds that determines whether the ranking is reliable. The previous capital game, which is similar to Baidu's bidding ranking model. For example, we can see that after Unsiwap issued coins in September, its governance token, UNI, is still held by some big players. Even if liquidity mining is cancelled, the big holders of UNI can still control the governance plan. Many of them This was confirmed by the news that this proposal did not pass.
This is the third major problem of the PoS consensus mechanism.
Traffic attracts users. This is the main strategy of Internet companies. It has also become the main operation method under the blockchain PoS mechanism in the current era. Nodes with a large number of currency addresses can be used as activities to distribute tokens for the public, but most of them are just attracting The arrival of some fleece people caused the tokens to be sold in a short period of time. The airdrops of UNI, LON, and 1inch just confirmed the pain points under the PoS mechanism. After the airdrop, the number of people who are willing to vote at the node for mining is relatively small, but a large number The sell-off caused the price of the coin to fall, causing dissatisfaction among miners.
This is the fourth problem of the PoS consensus mechanism.
These are the four main problems of the PoS consensus mechanism that I think from this year's perspective, but I have to admit that at this stage, it is the best mechanism model that will allow Ethereum to transform from PoW to PoS, but the liquidity has changed. Will new problems arise when it is extremely low?
Although it does not appear now, there is no guarantee that there will be no such situation. Therefore, I think that in the future, there may be more innovative consensus mechanisms to promote the development of the entire blockchain industry and truly empower the industry.