Vitalik Buterin, co-founder of Ethereum blockchain, has opined that the incorporation of proof-of-stake (PoS) consensus algorithm in Ethereum (ETH) blockchain will make it safer and also costlier than attacking Bitcoin (BTC) blockchain.
The information was shared by Buterin during Devcon 5, the conference of Ethereum developers that took place in Osaka, Japan between October 8 and 11.
In particular, Butering stated that the transition to PoS will make Ethereum blockchain safer as the cost involved in initiating an attack will increase tremendously.
After conveying respect to Bitcoin’s pseudonymous creator Satoshi Nakamoto, Buterin gave his presentation. He stated that crypto economics has been established to encourage people to safely maintain the network.
Buterin explained that the system has been structured such that hackers would have to set aside huge amount of money to successfully attack the blockchain. Nevertheless, Buterin opined that there are still issues with the current architecture. Buterin explained how it is still possible to attack a blockchain.
“What about attackers who have a really large, extra protocol incentive, or just want to watch the world burn? Could be a government. Or hackers that want to have some fun. The critique here says we’re assuming we have these participants motivated by economic incentives. What if there are people who just want to break the thing regardless?”
Following the implementation of PoS protocol in Ethereum blockchain, users will be able to freeze their Ether holdings in smart contracts in order to validate new blocks, rather than using huge computing power and electricity as carried out in PoW based blockchains. If stakers try to act against the guidelines, their stake can be rendered useless.
The ability to validate a block will be directly proportional to the quantum of Ether being staked. In simple terms, staking is similar to computing power which enables mining a block. Buterin envisions a PoS protocol where adequate time is given to challenge and prove a block to contain illegal data after its creation. If adequate proof is provided, the stake of illicit validator is terminated and the challenger gets awarded.
Buterin explained:
“The challenger can submit a transaction that points to [the block in question]. That calculation runs on the blockchain. The blockchain’s like, ‘wait the actual answer is 256 and this guy submitted 250 so this guy’s wrong.’ The original guy’s deposit is destroyed and part is given to the challenger.”
As per Buterin, an effective assault on the network will require several illegal blocks to be confirmed. To accomplish, a pile of Ether need to be staked, implying that an attack on Ethereum blockchain would be a costly affair. Buterin pointed out that it is an improvement over PoW.
Notably, on May 8, an Ethereum 2.0 PoS testnet beacon blockchain became active.
