Proof-of-Work and Proof-of-Stake are Regressive

Posted on Nov 10, 2018

Proof-of-Work and Proof-of-Stake are Regressive

The recent low in cryptocurrency morale has given our community a rich opportunity for reflection. The vast majority of us crypto enthusiasts have a genuine heart for marrying technology and social action, and I believe it’s time we reflect on where we wanted to go with digital currencies, honestly take stock of the state of blockchain technology today, and rigorously plan how to improve digital currencies moving forward. I’ve been fortunate enough to sit in on many lectures discussing blockchain technologies and incentive structures in computer science at Stanford University, and it’s led me to the conclusion that crypto incentives have driven a lust for global consensus which obscures the important goals we originally had in mind.

Although the trajectory of digital currencies is somewhat depressing right now, I believe that with some more compassion and creative thinking, cryptocurrencies can evolve toward the egalitarianism and liberation that inspires us so deeply. Cryptocurrencies were designed in response to corruption bleeding out in the form of unfair financial transactions and social inequality. To be clear: cryptocurrencie were concerned with resolving equality of transactions, not equality of outcomes (indeed, cryptocurrencies are far-fetched from economic socialism).

Airtime remittances have become a common unit of exchange in Africa, where governments often fail to maintain stable currencies.