Imagine there being a split in the Peercoin blockchain. (Can this only happen when a 51% attack occurs?)
What stops me from minting my stake on both chains at once? Is this considered to be an attack/threat/issue? If so, can it be dealt with?
Opinions highly appreciated!
I think Andrew Miller put it best: "The trouble with Proof-of-stake is that there is nothing at stake."
Consider the basic function of [b]proof-of-work and the blockchain[/b]: together, they [b]let the network come to a consensus when there are two (or more) different, competing chains.[/b] Miners must decide to dedicate their hashing power to just one chain-- they cannot "bet on" more than one. So their best strategy is to work on the chain that they think most other miners are working on, and that quickly drives the system to a consensus on a single, best chain.
The trouble with proof-of-stake is there is no natural incentive stopping a miner from assigning their stake to multiple, competing chains. If you try to create such a system, you “go meta” – you started by trying to solve the transaction double-spend problem (which proof-of-work and the blockchain handle nicely), and end up trying to solve a proof-of-stake double-spend problem.