The debate over proof of work and proof of stake may appear complicated at first, but it becomes more apparent as you think about it. It isn’t difficult in the least. The value of Working versus stake in business is quite obvious; a manager or owner will discuss the interests of their stakeholders. Everyone has a stake in the outcome of any network and blockchain and distributed ledger technology. The internet is no exception. As a result, the concept of proof of stake as a revolutionary is deceptive. We’ve seen a stake in society in action. Since the dawn of the modern era, We demonstrate our commitment to Western Civilization in the networks, organizations, corporations, and businesses that we frequent daily. That’s why you get a receipt at the end of the transaction. The receipt serves as proof of ownership of the purchased items. Yes, as well as store patronage. When you become a customer of a business, you invariably become a customer of that business. Become a shareholder in that company. And there will be a hierarchy of stakeholders which assists them in prioritizing their resources and potential future projects. Priority is given to the essential stakeholders. They will be given the highest priority and will be addressed first, depending on their level of desire. It’s possible that there won’t be much left for other lower-level stakeholders.
There is a trickle-down effect in this case. It may be more dispersed in some cases, but there will always be a priority stakeholder group. Cardano does not change this. This system is designed to function how we’ve come to expect. So much so that Cardano reintroduced the technical names in a system that has become quite common. As a result, it may appear to be brand new. For some, it’s possible that they haven’t fully grasped their role as stakeholders in every business relationship and network to which they contribute. What exactly does this imply? It means Cardano will function similarly to systems we are already familiar with and have grown tired of. We are collectively tired of business as usual, the way things have always been. And we’ve been asking for it.
For quite some time, has been reimagining the economy. Selling an old idea as a new one through clever wording and marketing is entirely deceptive. Those who get involved with the promise of something new, but which is a reiteration of something old and unwanted, will invariably be disappointed when they finally find themselves in it. It’s Cardano, in this case, whatever they’ve been promoting. When, if ever, that network is fully operational, Many people will be disappointed to learn that it works. Cardano is not new, just like the networks they have expressed a desire to leave behind searching for something new. Even its name, which is the name of a thing, is based entirely on old science and old scientists. It has also established itself in an academic environment notorious for being slow to modernize and accept new ideas. As a result, Cardano is staunchly traditional in its DNA. Predictably, the network will inevitably be dominated by the interests of giant whales, who will do everything possible to amass as much ADA as possible. When smart contracts are activated, and different transactions are enabled, you’ll notice whales in the system design, smart contract platforms that offer various services. They’ll be motivated to collect as much ADA as possible from regular users. They will then be able to use ADA’s reserves to develop and fill their staking pools, and they will create more and more staking pools as each one saturates so that one whale could easily have a dozen or more staking pools with no actual limit. The circulating supply of ADA will eventually run out, and regular users will have to compete for the remaining stock. Wales will then become their own Federal Reserve, IMF, or World Bank, with the ability to decide when to inject liquidity into the public market from their vast reserves of staking pools, subject to certain economic conditions inspiring them to do so.
Otherwise, they’ll keep their massive stakes and enjoy collecting transaction fees as much as possible simply by maintaining relatively simple data servers. This will give the whales a disproportionate amount of power, discouraging people from freely transacting on the Cardano network. Within a year to two years of full operation, I believe. The impact of these design imbalances will be felt by regular users, at which point disillusionment and disappointment will be significant, potentially disabling any rational person who cares enough to think about this topic carefully. The staking and pooling system discourages trading and transacting, particularly among the most influential stakeholders. This will result in a lack of liquidity problem, which will be persistent.
In contrast, when we consider Bitcoin a peer-to-peer network, The Digital Cash System is a type of electronic money. We can see that it’s a unique design that’s made for trading and liquidity. It’s precisely like money. When we talk about liquidity, we’re talking about a lot of things. Today, we call it “cash money” in a euphemistic manner. What is the amount of cash that so and so has, and what is their liquidity? Because Bitcoin is a cash system, it is designed to be liquid. The network functions by transacting with itself and its users continuously. The so-called miners, or transaction processors, who operate on a proof-of-work system, exemplify this demonstration. It’s also a fairly straightforward concept to grasp. Work is an unavoidable part of life. It is in our nature to look for work and to do work. We also created economic systems to be able to track and record our work. And it is on the foundation of these various methods of recording and tracking that our entire economy is built. We are keeping track of work and allocating resources as needed. Because of flaws and inefficiencies in the medium and technology used to run such a system, you will be paid in proportion to your level of work. Traditional, modern-day X exploits have been used, allowing a well-resourced small group of people to profit unfairly from technology flaws rather than philosophy. The greatest threat to our society is dishonesty as well as a trading system. When is it no longer a question of whether or not you’ll be able to work? When does the work get done? When it’s no longer a question of who did the work, the proper distribution of resources can take place, and our society can thrive as a result. Everything is becoming more cost-effective and efficient.
In comparison to today, we can get more value out of our work and time. The bedrock of our human nature is the proof-of-work system. We are a species that is constantly on the move. Always on the move and doing something. We require a network infrastructure that can keep up with us without limiting its scalability.
Similarly, we do not find our human potential and ability to grow in Bitcoin. Because of its widespread use, speed, and lack of transaction fees. It promotes the flow of information. As people trade more and more data, the value is derived from this data movement. They are accumulating wealth, their wealth of knowledge, as well as their wealth concerning each other. Bitcoin recognizes that every user, miner, processor, and node is a stakeholder in the network protocol in this way. And the value of the stakeholder is determined not by the number of eight currencies but by the volume of contribution in terms of work and resource distribution. We are compensated for our efforts. We need work, and we’re willing to pay for it. We are compensated and give compensation. We produce and receive payment. And that is the money cycle.
Money is a material representation of labor effort and time. Within the bitcoin system, the only whale is the person who is the most capable, consistent, honest, and reliable, with a tremendous volume of sound, accurate, and valid work—maintaining such a position requires constant vigilance and incredible daily effort. As individuals cycle through natural seasons of high levels of high volumes of work and low volumes of work as seasonal industries, there will be no stagnation but rather a constant flow. Each one reigns supreme in their own time. This maintains the economy’s flow and ensures deep and consistent liquidity. The only protocol is proof of work. It is the most accurate representation of how value is genuinely measured in our society. It’s exact. And it happens right away. There is an immediate benefit that is not based on several valuations but rather on utility, on what it can offer and how it can help us live better lives.
Cardano is a proof-of-stake cryptocurrency, which makes a lot of sense. In the early stages, when the network can only offer dividends from a constantly depleting treasury, there isn’t much the web can offer. As soon as the network’s practical utilitarian aspect goes live, The benefit of the proof-of-stake system will be gone. However, it is a deterrent to the numerous stakeholders in its network’s economic growth. The good news is that none of these issues exist in bitcoin and will not exist in the future. It is hugely beneficial. And it’s of immediate use. To anyone who values the efforts, we are made to work together and build this society.
*This text was transcribed from voice by AI.