Bitcoin mining’s biggest critics have always cited energy consumption as a source of trouble for mining digital assets, and Ripple co-founder Chris Larsen may have a solution to the problem in his latest blog. I think. Larsen, executive chairman of Ripple Labs, suggests that Bitcoin miners move from existing energy-intensive proof-of-work (PoW) algorithms to more energy-efficient proof-of-stake (PoS) protocols. increase. He said that these miners should see his plans as “a net plus for their longevity” and at the same time he about how switching can benefit mining companies. Added the view of.
Larsen says the only way to move to a low-energy consensus is by changing the code in the network. This change will significantly disrupt the nature of the Bitcoin network.
This is an early stage (never perfect), but I believe this could involve them if miners continue to receive BTC incentives with code changes. Let’s discuss. 2/2
— Chris Larsen (@chrislarsensf) December 9, 2021
Proof of Work is a consensus algorithm that protects Bitcoin transactions on the blockchain. Bitcoin networks are the most secure and reliable, but the amount of energy required by Bitcoin mining causes endless controversy in crypto space.
“The least confusing proposal is just to take a snapshot of the current hash rate of existing miners and reward them on a proportionally distributed hash power basis until 2140,” Larsen said in a Medium post. .. “Existing miners only have the right to future Bitcoin rewards without making any additional investment in the mining platform.”
According to Larsen, his proposal is fair because it rewards miners for their efforts to protect the Bitcoin network over the years at lower operating costs. “Under such a proposal, miners will get additional economic benefits-substantially less operating costs to get the same income,” he concluded. To improve network security, Larsen writes that the proposal can be modified to include a staking mechanism.
Billionaires have also suggested that networks can tokenize future rewards for miners. He said such upgrades would be in favor of miners, especially as the entire network moved to full green finance technology.
It is very unlikely that this proposal will be implemented, as Bitcoin mining companies currently planning to increase their share of the hash rate will miss significant earnings. Many US mining companies are already considering the use of green energy sources, but the move to PoS makes little sense. The proof of stake model also has its own problems, which are the security implications of the blockchain. There is no solution to this problem unless there is an immediate change in Larsen’s proposed proposal.
Stay tuned for the latest updates on the Consumer Electronics Show for Gadgets 360 on the CES 2022 hub.
..
