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Given OFAC/Tornado Cash developments, which is better PoW or PoS?

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by COINS NEWS 162 Views

The only 2 coins I've ever held and DCA into are BTC and ETH. It was historically more BTC than ETH but since I got into yield farming last year, I've tilted more towards ETH. And was excited like most people about ETH's upcoming move to PoS. But...

Now there's now literally more than 1 protocol hack a day in defi (not counting the endless number of scammed individuals more easy to target via smart contracts), and the whole OFAC compliance thing had me thinking about PoS long-term. Supposed decentralized platforms - especially with VC-funded / doxxed teams - have complied without resistance.

Several issues come up with validators and censorship resistance. Consider https://twitter.com/LefterisJP/status/1558944794658873344

If regulators ask you to censor at the protocol level with your validators will you:

A) Comply and censor at protocol level

B) Shut down the staking service and preserve network integrity

Coinbase's (which holds a lot of ETH involved on behalf of customers) Armstrong replied B.

And follow-up question:

https://twitter.com/ercwl/status/1559268027983593474

Question for the Ethereum community. If a majority of stake chooses A above, will you:

X) Consider the censorship an attack on Ethereum and burn their stake via social consensus

Y) Tolerate the censorship

Twitter pollsters overwhelmingly voted X, i.e. to burn the stake of the validator for including/excluding some transactions that some majority/consensus mechanism doesn't approve of. There don't seem to be any good answers here... Note also that so far the Ethereum network itself has not done or been asked to do anything about Tornado Cash.

Since the DAO hack back in 2016, if I'm not wrong the network has not censored anything, and even hackers/thieves could easily move and keep their funds on the network (and indeed use things like Tornado). Is this under threat with PoS?

PoS has a history with ADA SOL etc but I don't think it is as battle-tested as BTC's (or even ETH's) PoW. I'm also assuming that similar censorship of/by PoW miners is much more difficult (correct me if I'm wrong).

I'm multiplying the DeFi smart contract, cross-chain issues, hacks and what not with government involvement with censorship issues post-Merge. I'm getting neon dreams of DAO-like incidents, freezes and validator and censorship wars - with governments now involved coming up. I hope these fears are misplaced and ETH actually delivers (I have never sold and don't plan to sell any of DCA'ed ETH or BTC anyway).

For now, I've gone contrarian and back to allocating more BTC than ETH in my DCAing, but my views are evolving and are open to change again...

submitted by /u/fap_fap_fap_fapper
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