Updated January 23, 2018
How ZEITCoin (Note: URL currently redirects to forum on BitcouinTalk as website was hacked and a new site is being built) handles the so called challenges of Proof of Stake (PoS) (Answers provided by “KikloV” from BitcoinTalk Zeit Forum)
- Distribution: Since block rewards go to stakers, how do you distribute coins initially?
Initial Coins were generated thru Proof of Work, and later our high inflation rates (for 3 years) kept the price low enough that anyone could afford to own a large amount of ZEIT, if they saw fit.
- Monopolization: Those with a significant amount of coins reap a majority of all future coins.
Our Ultra Low Inflation Rate put an end to this concern. As you can earn free dogecoins or sell your stake from other coins and buy more coins per day than our ULI of .0005% per year can generate.
- 51% attack: Just like how Proof of Work (PoW) has to be wary of a 51% attack from a miner, so too does PoS have to be wary of a staker who has a 51% stake weight.
ZEIT uses Coin Age, to make sure the % is always in flux, plus as an attacker earns stake , he automatically decreases his % for a set time, making 51% attacks against our coin extremely difficult and extremely short in their duration (compared to a PoW coin where a 51% attacker can keep control of the network indefinitely . Also the cost to becomes a 51% stake holder drives up the price and would make the attacker lose all of his investment. Chinese have constantly had over 60% control of bitcoin for over 2 years, funny no one worries about them!
- Nothing at Stake (NoS):
This was a manufactured lie made up by Bitcoin’s Satan G. Maxwell, as a propaganda tool to discredit Proof of stake. For it to even be attempted requires that all Clients perform a process called multistaking. None of the PoS wallets in release today allow multistaking. And in truth , if studied, multistaking is an idiotic waste of resources which can make PoS burn more CPU & memory resources than even PoW, wasteful and stupid is the best description of multistaking.
For more detailed explanations are:
More Info on ZeitCoin:
P.S. I’m a holder of ZeitCoin