And it’s different than money or legal tender as well. That’s different than a national election, which is supposed to be a decentralized platform. These are voluntary organizations shareholders, customers, and employees can go to a different corporation if they don’t like the rules. In a corporation, each share is worth a vote for proposals and board seats, since the owners decide what the company will do in proportion to their ownership. “ Instead, that proof-of-stake system mainly works well for stakes in centralized private property, like corporations.

If it gets too centralized, that kind of defeats the purpose of a decentralized blockchain. Eventually it would likely consolidate into an oligopoly (if it wasn’t already), with a handful of multi-billionaires controlling most of the votes and ruling everything. “ That’s not a system many folks would like to live in. He’s a more valuable citizen than Mary, by a factor of a million, and also gets paid more by the government for already being wealthy. Jeff Bezos, with $200 billion in net worth, gets 2 billion votes, and earns $2 billion from the government for voting. Mary the high school science teacher with $20,000 in net worth gets 200 votes, and earns $200 from the government for voting. “ It would be like a political system where you get a vote for every hundred dollars you have, and then also get paid a dollar by the government for casting each vote. Network dominance tends to lead to more network dominance, in other words. Since they don’t need to expend resources to stake, they can simply increase their overall staking amount as they earn ongoing coins from staking rewards, and exponentially grow their influence on the network over time, forever. “ With a proof-of-stake system, the more coins you have, the more voting power you have, and those with the coins are also the ones earning the new coins from staking. So, proof-of-stake is a much more complex system that will try to take away stakers’ coins if they vote improperly, and has ways of checking to see if they are voting on multiple chains… In addition, they need a way to make sure stakers aren’t voting on all possible chains (which can’t be done with proof-of-work, because it takes real-world resources for each one). “ Proof-of-stake is more complex, because there is no connection to real-world resources and the system needs a way to punish stakers that improperly vote on the “wrong” chain. There is a tangible connection between the blockchain and real-world resources. They self-inflict their own wound, and thus it rarely happens on purpose. Their punishment is simply that they spent electricity on blocks that weren’t valid or weren’t included in the longest eventual chain, and thus lost money. “ Proof-of-work is simple, because there is no need to punish bad miners that try to validate the wrong chain or make invalid blocks that don’t fit the rules of the node network. Instead of committing electricity and processing power to create new blocks on the blockchain, they’re committing their stake of coins to do so. “ Proof-of-stake is a system where holders of the cryptocurrency lock up or ‘stake’ their coins, and use them to vote on the valid blockchain, and get rewarded with more coins for successfully creating new blocks. In a blog post published on her website in November 2021, Alden talked in more detail about “the trade-offs of proof-of-stake as a consensus mechanism.” Most digital assets are equities, and analyzed as such.“ It’s the digital asset that achieved a distribution pattern, decentralization, and immutability to be considered a commodity rather than an equity. “ Either way, bitcoin is the commodity.“ If you think that means I’m “pro-bitcoin and anti-ethereum” as some do, remember that ethereum is still proof-of-work for good reason.Proof-of-Work systems can be a commodity.

Work is the only thing that can reduce or eliminate governance.

“ Consensus mechanisms that don’t involve work… instead involve governance.

Proof-of-Work is the new innovation, especially when combined with difficulty adjustments.- Lyn Alden February 15, 2022 And yet, still useful for centralized systems. It's what corporations and banks have run on for centuries.

Lyn alden transition