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RE: Binance SmartChain, Ethereum, Consensus Models, Open Source Software and their Effects on Decentralized Finance.

in LeoFinance3 years ago

Good question, in theory pure Proof of Stake doesn’t limit the number of people who can participate in consensus and so it can still potentially be as decentralized as proof of work. But in proof of work the limit is the cost of the computer, and in proof of stake the limit is the cost of the computer and the cost of stake. So the cost of the stake can be a factor in the degree of decentralization of a system.

An extreme example is Ethereum. When we look at Ethereum right now it’s the cost of a computer, but in Ethereum proof of stake, it’s the cost of a computer and 35 Ether, about 100k.

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