I wanted to created a topic where we could discuss in detail the advantages of dPOS over POW, especially when it comes to Shelley.
Here are some obvious ones, but I would appreciate if we could gather more nuanced ones, pertinent to how shelley works here so we understand and explain them to people who ask about Shelley.
Security/Decentralization: Unlike POW, where you can ‘rent’ mining power on hourly-basis, it is expensive to attack a network based on dPOS. The attacker would have to buy 51% of all tokens in the market to have enough power to compromise the network. Downside: This could also be a risk for smaller-cap networks, which are cheaper to compromise. The deterrent here is that the community will fork the code leaving the attacker behind, making his investment worthless.
Power consumption: dPOS does not require enormous amount of power to run.This makes the network accessible to average user thereby increasing the decentralization factor compared to POW, where players with significant financial power effectively run it.
POW is more profitable than proof of stake for now (electricity vs. income). You can create tokens that do not yet exist and sell them at peak times.
In POW, when you sell proof of work tokens, you do not sell your miner, you still own the hardware. When you sell proof of stake tokens, you are selling your miner.
With POW, when a token becomes less profitable, you just dump it and point your miner at a more profitable token. Proof of work is more flexible. (at least in the context of the miner).
PS: I will be updating this list as responses come in!