The fundamental flaw of Ethereum PoS is circular reasoning

Overnight, Bitcoin (BTC) hovered below $40,000. Ethereum "the merge" was delayed, and the transition from PoW to PoS was bumpy.

PoS stands for Proof-of-Stake, which can be translated as proof of equity or pledge. In order to replace PoW (proof of work) which consumes huge amounts of electricity, PoS instead examines the amount of staked tokens and the age of the coins of the block-producing nodes.

The proof data related to the pledged tokens exists on the blockchain ledger protected by PoS. PoS needs these proofs to prove the effectiveness of the protection. This forms a circular argument.

In other words, how does a newly launched client verify that the blockchain data it receives is correct? It needs to first believe that the blockchain data is correct - at least it needs to believe that the pledge data on the blockchain that claims to be a block producer is correct.

If the blockchain data is forged, then the pledge data can be forged. If the pledge data is forged, then the block production proof of the block production node can be forged. If the block production proof is forged, then the blockchain data can be forged. In the end, we can prove nothing and verify nothing.

Even if a PoS design is mixed with weak PoW like PPCoin, since PoS greatly weakens the computational complexity of the PoW part, it makes it effortless to forge a PoW proof.

Let’s reread the Bitcoin white paper published in 2008. In this thin document, Satoshi Nakamoto wrote: “Nodes can leave and rejoin the network at will, accepting the longest proof-of-work chain as proof of what happened while they were away.”

When we don’t have any human-written data that can be trusted, the only thing we can trust is PoW. Because anyone who wants to “forge” PoW must pay the same price of electricity and time, so “forge” is real.

As Satoshi wrote in a forum post on August 7, 2010: “Proof of work has the beautiful property that it can be relayed through untrusted middlemen. We don’t have to worry about a chain coming from escrow. It doesn’t matter who tells you the longest chain, the proof of work speaks for itself.”

A PoS system can obviously be cheated via an eclipse attack.

If a new client trying to bootstrap has its request to synchronize block data hijacked by a firewall, and then the firewall forges false block data in response to the client, this is feasible for PoS because forging PoS proofs is not time-consuming and effortless.

To forge a PoS certificate, you only need to forge a block node. To forge a block node, you only need to forge the pledge information. To forge the pledge information, you only need to forge the block data. To forge the block data, you only need to forge the PoS certificate.

Conversely, if you forge block data, you can forge pledge information. If you forge pledge information, you can forge block nodes. If you forge block nodes, you can forge PoS proofs. If you forge PoS proofs, you can forge block data (PoS proofs prove the correctness of block data).

For the most powerful country in the world, it is entirely possible to cut off the Internet in a local area, or to completely intercept all of its Internet requests and send back false data.

Only with PoW proof of work, even if the interceptor can hijack Internet communications and send back false data, it is impossible to forge a valid PoW proof, because anyone who creates a PoW proof needs to invest the same huge computing power hardware, consume the same huge amount of electricity, and wait for the same long computing time.

No person, no organization, no country can transcend the constraints of mathematics and physics.

Today, we have many PoS or variant blockchains. Without exception, they all have this big flaw at the most fundamental level.

There is no way to solve the problem. The only way is to be an ostrich, bury your head in the sand and pretend not to see it.

At the same time, pray silently in your heart that no powerful fist will strike it comprehensively.

The only thing that is not afraid of the powerful fist is Bitcoin.

As long as Bitcoin will always be the most powerful fist in cyberspace.

There is a famous saying in the world of physics: Dignity is only on the edge of the sword, and truth is only within the range of the cannon.

The same philosophical principles apply in the digital world and cyberspace.

The only difference is that the swords and cannons in the digital world are very different in form from those in the physical world.

Hash is the sword and electromagnetic energy is the cannon.

If you seek peace through war, peace will survive; if you seek peace through compromise, peace will die.

All victories will ultimately be the victories of materialism.