Proof of Work is coming baaaaack to eth baby \ stacker news ~bitcoin

Proof of Work is coming baaaaack to eth baby chainfail.substack.com/p/arbitrum-brings-out-the-hashcash

373 sats \ 8 comments \ @petertodd 26 Feb 2023 bitcoin

60 sats \ 2 replies \ @halalmoney 26 Feb 2023

Extract:

“Proof of Work removes some opportunities for gaining an edge in arbitraging a system, because it makes the next block source random. This randomness makes it hard to figure out who to stalk to get the next block. It could be coming from anywhere.

Centralized systems on the other hand have a lot of issues with mitigating MEV. They’re in one place and the rules about how they operate are well known. It’s interesting to see the randomness re-added back to a centralized system, but pushed onto being the burden of the clients rather than the server’s. Since you’re not randomizing the block source, the only way out is to randomize the source’s client connections. And it seems like the best way to do a random lottery is to involve proof of work.”

0 sats \ 1 reply \ @tomlaies 26 Feb 2023

Proof of Work removes some opportunities for gaining an edge in arbitraging a system, because it makes the next block source random. This randomness makes it hard to figure out who to stalk to get the next block. It could be coming from anywhere.

Disingenuous. The next block is random but e.g. owning exactly 1% of hashing power will over a year turn out to exactly 1% of blocks. I bet that's misleading on purpose.

20 sats \ 0 replies \ @0260378aef 26 Feb 2023

Did you misunderstand? That's niftynei's text and she's not criticizing PoW, the point is that MEV is harder to achieve in a standard bitcoin-style PoW based "election" of next block producer, compared with something centralized or simple round robin etc.

(Iirc this is a problem they try to address in some proof of stake algos - if anyone can see in advance which party will be the next block producer, it leads to undesirable outcomes.)

10 sats \ 0 replies \ @faithandcredit 26 Feb 2023

reinventing the wheel ftw.

soon ethereum will also begin to claim its store of value and sound money and the whole smart contract thing is just supposed to happen off chain

10 sats \ 0 replies \ @TheL0wner 26 Feb 2023

never, would be to big of an admission that pos was a mistake. devs would never go for it.