A Digital Signature Scheme, or DSS, is a technical solution to stop validator fraud from occurring.

Digital Signature Scheme

Validator fraud happens when a validator is able to steal coins from other users.

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- Nothing-at-Stake problem
- Validator fraud
- Wealth concentration
- Double spending
- Staking pools

Concerns regarding Proof-of-Stake

Saleh, Fahad. (2021). Blockchain Without Waste: Proof-of-Stake. Wake Forest University. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3183935


Blockchain Without Waste: Proof-of-Stake

Like Proof-of-Work (PoW), Proof-of-Stake offers validators a monetary reward for updating the blockchain. However, it does not impose a monetary cost, such as that incurred from solving PoW problems. Hence, the Nothing-at-Stake problem, detractors assert, implies that validators will always update the ledger, even if it unnecessarily perpetuates disagreement. 

Nothing-at-Stake problem

Validator fraud

Wealth concentration is the concern that Proof-of-Stake will lead to the rich getting richer, causing a concentration of wealth.

Wealth concentration

A double-spending attack is when an attacker uses native coins to purchase a physical good, but then attempts to reverse the transaction to regain possession of their coins. 

Double spending

Staking pools are organizations of individual stakeholders join together to share rewards from validation.

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