Ouroboros: A Provably Secure Proof-of-Stake Blockchain Protocol [pdf] (2019)
Proof of Stake not only replicates the same dynamics that Bitcoin was designed to eliminate (more wealth -&gt; more power in system) but also can only be made secure against a maximum of ⅓ byzantine actors, compared to Proof of Work&#x27;s superior ½.<p>As for using it for Layer 1 systems, Andrew Poelstra nailed it in his conclusion [0]:<p>&quot;We showed that by depending only on resources within the system, proof of stake cannot be used to form a distributed consensus, since it depends on the very history it is trying to form to enforce loss of value.&quot;<p>Proof of Stake might be useful at Layer 2 (becoming equivalent to voting stock in a company), but not as a base-layer consensus mechanism.<p>[0]: <a href="https:&#x2F;&#x2F;download.wpsoftware.net&#x2F;bitcoin&#x2F;pos.pdf" rel="nofollow">https:&#x2F;&#x2F;download.wpsoftware.net&#x2F;bitcoin&#x2F;pos.pdf</a>