One of the most astonishing bits of news to come out this year (2022) is the meteoric fall of the moon-themed “stable” coin terra-usd and it’s companion, Luna. In a matter of days a rapid sell off occurred causing a nearly $100 crypto token to collapse into the single digits.
The effects of this crash are wide reaching, bleeding every other market including bitcoin by at least half. The news is making rounds and I imagine there are a lot of pissed people who have now given up on the idea of crypto. You should know that if you only valued proof of stake, you have robbed yourself the true crypto experience.
The cause of the crash is seemingly unknown, with a good answer being put forward that the value behind the crypto which was to secure the value of the terra dollars was in itself valueless. And it was.
Proof of Stake is a system which imitates the “proof of work” system. It supposes that since it barely uses any energy that it is superior.
https://medium.com/luniehq/lunie-staking-guide-terra-58d1b691c431
Much marketing dollars were spent to convert public opinion on this matter.
https://www.wbur.org/cognoscenti/2021/03/22/bitcoin-crytocurrency-environment-climate-energy-fred-hewett
By removing the redundancy which requires physical hardware you have essentially pruned the genius idea behind bitcoin. Proof of Stake is a theoretically better, but unproven system.
https://medium.com/coinmonks/understanding-proof-of-stake-the-nothing-at-stake-theory-1f0d71bc027
So when I say you have tossed the baby out with your bathwater, it fits the scenerio quite rightly. You have attempted to fork a working system which was not broken, claiming to be superior. Your efforts were only of value to test unproven systems and to prove the tested ones.
Thinking to the future, do we imagine we will live in a world where we use computers everyday, but computer hardware will no longer be needed? Consider that when attempting to dismiss proof of work.
The ideas behind proof of work are not antique. They can translate directly to new technology. It is the principle of mass redundancy which defeats the byzantine generals.
