--- Log opened Mon Jan 01 00:00:59 2018
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04:44 < runeks> The usual explanation for how proof-of-stake works — compared to proof-of-work — is that it uses the scarce resource that is the chain’s own token, as opposed to the scarce resource that is electricity.
04:44 < runeks> The fundamental problem with this approach is that, in the absence of consensus, a token is not scarce at all — but rather its supply is unlimited — since infinitely many tokens exist on an infinite number of valid chains.
04:44 < runeks> So, in order for a token to be limited in supply, consensus on which chain is the canonical one must already exist. Thus, proof-of-stake reaching consensus depends on consensus existing beforehand.
04:53 < runeks> Essentially, proof-of-stake tries to reverse cause and effect: a token is scarce *because* consensus exists; consensus doesn’t come into existence because a token is scarce. Only consensus can result in scarcity of a decentralized digital token, so scarcity cannot be used as a presupposition for reaching consensus.
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05:25 < mryandao> ^ sounds like PoS is a logical fallacy
05:26 < mryandao> by circular reasoning.
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--- Log closed Tue Jan 02 00:00:00 2018