Author Topic: POS vs. DPOS  (Read 5079 times)

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Offline santaclause102

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Re: POS vs. DPOS
« Reply #15 on: July 25, 2014, 12:29:19 am »
For review, as I have noticed that this often gets overlooked, here is the link to the most current revision of our whitepaper, by the way: https://www.dropbox.com/s/cbuwrorf672c0yy/NxtWhitepaper_v122_rev4.pdf
+1 looks like some quality information!

Offline Agent86

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Re: POS vs. DPOS
« Reply #16 on: July 25, 2014, 12:50:44 am »
Ok, I also wrote this complaint about NXT forging on the NXT site:

Aren't forging pools a threat to NXT/centralization?  For instance, I say "lease your forging power to me and I will send back 90% of the fees relative to the stake you leased so you don't need to bother with it."  Even if you limit it by address, I can set up multiple addresses to accept leased forging.  I can also set up pools that don't appear to be under the same ownership but actually are.

The even more sinister attack is I set up a pool that actually returns even more than 100% of fees.  I basically pay people to give me power over the network.  You have to rely on people being altruistic to avert this attack.  People have to reject the short term financial gain for the greater good of the NXT network... That's asking A LOT!
IMO these are BIG security advantages of DPOS over NXT forging.  APPROVAL VOTING solves these problems in DPOS and creates the right incentives. This allows us the advantages of some centralization for high transaction volume/scalability/efficiency without the security risks of poorly incentivized centralization.