06/01/2023
CORE DAO
"Why Stake
The vision for Satoshi Plus consensus is coming to life. As illustrated in Hardening the Core Network, when Core mainnet goes live, the first Satoshi Plus powered chain will be fully operational. With mainnet’s launch on the near horizon, proof of work (“PoW”) and proof of stake (“PoS”) will soon finally meet their optimal synthesis, upholding the vital elements that Web3 needs: Security, Scalability, and Decentralization.
Work Together, Stake Together
The first half of the Satoshi Plus equation is proof of work, as expounded upon in Why Proof of Work and Hardening the Core Network. The capability of incorporating Bitcoin’s consensus mechanism hardens the decentralization of the Core network. The other half of the equation, however, is equally important. Although proof of stake by itself may trend towards centralization, when properly crafted and balanced with PoW, proof of stake brings token holders directly into the network security process and scales overall blockchain capabilities.
To briefly recap how proof of stake functions, validators that “stake” tokens as collateral are selected for confirming transactions and otherwise securing the blockchain’s immutable ledger. When validators are selected, a stick and carrot approach aligns validator incentives with those of the network’s stakeholders as a whole. If acting Byzantine or engaging in other misconduct, validators can be excluded from participating in consensus activities and may have their staked tokens slashed. When validators properly validate transactions as they are incentivized, they receive rewards.
Delegation Democratization
Satoshi Plus’ implementation of delegated proof of stake (“DPoS”) takes PoS a step further. Traditional PoS requires a minimum amount of tokens to qualify and run a validator. DPoS enables any token holder to simply delegate their staked tokens to validators, thus making the staking process far more accessible and secure. By removing the need to run one’s
