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Story: Vitalik Buterin Weighs the Cost of Attacks on PoW Chains against PoS- Why ETH2 is Better

By Ayobami Abiola

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The evolution in the Agricultural sector is a very great example of how blockchain technology is evolving. Ages before, farmers have to cultivate with their energy.

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Anti-Sybil mechanisms employed by early blockchains are just like farming in the good old days.

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Vitalik Buterin, Ethereum Co-founder, began to evaluate the reasons why Proof of Stake (PoS) is better than Proof of Work (PoW) in a recent blog post.

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both sides by side and “look at how much it costs to attack a network per $1 per day in block rewards.”

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He reported that an attack on a GPU-based Proof of Work will cost approximately $0.26. This is because “You can rent GPUs cheaply, so the cost of attacking the network is simply…

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ASIC-based PoW is generally more secure than GPU-based because of the capital cost and the profitability period only lasts for about 2 years when new and more powerful ASICs are…

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“If a chain gets 51% attacked, the community will likely respond by changing the PoW algorithm and your ASIC will lose its value.”

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Just like the machine age in Agriculture, PoS mechanisms have shown more promising security for chains against network take-overs. PoS works smarter and not harder as in PoW.

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“Unlike ASICs, deposited coins do not depreciate, and when you're done staking you get your coins back after a short delay.

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For 1$ reward per day on Eth2 for example, a node will have to stake $2433. To attack this kind of mechanism, an attacker must be willing to spend $2189.

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Vitalik Buterin highlighted more areas of PoS that made it better than PoW. He reported that attacks are easily recoverable in PoS than in PoW.

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Proof of Stake anti-Sybil mechanisms come in different shades, but the general idea is that their implementation is far better than Proof of work.

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