Is Ethereum Proof of Stake Sustainable? — Considering from the Perspective of Competition Among Smart Contract Platforms
30 Pages Posted: 26 Sep 2023
Date Written: September 7, 2023
Abstract
Since the Merge update upon which Ethereum transitioned to Proof of Stake, it has been touted that it resulted in lower power consumption and increased security. However, even if that is the case, can this state be sustained?
In this paper, we focus on the potential impact of competition with other smart contract platforms on the price of Ethereum’s native currency, Ether (ETH), thereby raising questions about the safety and sustainability purportedly brought about by the design of Proof of Stake.
Keywords: Proof of Stake, Blockchain, Cryptocurrency, Smart Contract, Competition
JEL Classification: B31, E42, E51
Suggested Citation: Suggested Citation