Proof-of-Stake vs. Proof-of-Agreement: Stellar’s Security Edge

The blog emphasizes the weaknesses of Proof-of-Stake (PoS) networks, which include vulnerabilities to economic-driven attacks where profits can override security measures. It uses incidents such as the 2023 MEV-Boost exploit, where attackers gained significant profits despite slashing penalties, to illustrate these points. It also addresses the risk of non-economic attacks, particularly those motivated by geopolitical interests, that PoS cannot inherently defend against due to the anonymous nature of validators. The blog presents Stellar’s Proof-of-Agreement (PoA) as a more secure alternative, which prioritizes trust and reputation over economic stake for block production. In PoA, validators are required to gain trust from established participants, reducing the chance of rogue actor influence and enhancing network stability. This trust-based system aims to prevent attacks by unknown entities and is proposed as a robust safeguard against both rational economic exploits and irrational geopolitical threats.