Zach had an awesome talk with Axel Ericsson, a cofounder at 1protocol, focusing on providing proper incentives to both token holders and miners on blockchains. Although a work still in progress, 1protocol’s Vest system aims to allow all players to collaboratively supply work for staking protocols.
Here’s what Axel, a new Thiel Fellow, had to say:
Staking protocols are the future
Moving away from opportunity cost to participate in a blockchain to a staking-based incentive system allows for much better alignment of values in a decentralized, trustless system. Axel believes that most systems that can be modelled as market protocols will move to staking protocols as a result.
It will be tricky to make
Consensus protocols currently has a number of problems, such as the “nothing at stake” problem, where forgers in proof-of-stake-based blockchains don’t need to use resources to create new blocks that would be accepted by the majority of participants in the blockchain. Axel notes that a number of participants in the blockchain world have come up with some solutions to this, but acknowledges that work remains.
Democratization of blockchain
With Vest, more people can participate in blockchain technologies without having to provide a complex computer system with redundant power supplies and redundant Internet. Axel is very excited to be working towards opening up blockchains to more of the world!
- The future will be defined by staking protocols
- Proof-of-stake remains a challenge, but
- It promises a democratization of blockchain technology