Hacker News new | ask | show | jobs
by csomar 3183 days ago
Isn't that equivalent to "centralization"? Instead of "spending energy" for mining; you spend "credibility" or "holding cash".
2 comments

Well, it's no closer to centralization than proof of work is. If one, or more than one party working together control >50% of the staked coins you are left with the same result as one party controlling 50% of the hashing power.
I think the assumption is that the more Ethereum you hold, the more incentive you have to keep Ethereum valuable and thus not attack the currency or its transactions.