Corpus ID: 50784122

A Memo on the Proof-of-Stake Mechanism

@article{Gui2018AMO,
  title={A Memo on the Proof-of-Stake Mechanism},
  author={George Gui and Ali Hortaçsu and Jose Tudon},
  journal={ArXiv},
  year={2018},
  volume={abs/1807.09626}
}
We analyze the economic incentives generated by the proof-of-stake mechanism discussed in the Ethereum Casper upgrade proposal. Compared with proof-of-work, proof-of-stake has a different cost structure for attackers. In Budish (2018), three equations characterize the limits of Bitcoin, which has a proof-of-work mechanism. We investigate their counterparts and evaluate the risk of double-spending attack and sabotage attack. We argue that PoS is safer than PoW agaisnt double-spending attack… Expand
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