Bitcoin (BTC) for the poor and Ethereum (ETH) for the rich?

Bitcoin (BTC) for the poor and Ethereum (ETH) for the rich?

Since the announcement of its transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS), the Ethereum (ETH) network has been making a lot of noise. Some believe that Fusion is a good idea, because of the performance that PoS will bring to the network. But, for others, PoS is a complex and more expensive consensus, compared to PoW used on the Bitcoin (BTC) network.

Ethereum (ETH) has good reasons to switch to PoS

On July 19, the account Bitcoin for Freedom posted on Twitter that choosing Proof of Stake (PoS) would mean trusting rich people and choosing Proof of Work (PoW) would mean trusting math. It is true that the use of a Proof of Stake (PoS) consensus has significant costs, not least because requires high-end machines. PoS also favors the wealthy as users must be willing to lock up their ETH tokens for a long time. In addition, they may lose some of their holdings in the event of cost cuts.

However, professionals are right to believe that Proof-of-Stake performs in many ways better than Proof-of-Work. For example, compared to PoW, PoS would be more energy efficient (99%). This comes from the fact that the power with this protocol is not a decisive factor to find a consensus on the network or to create new blocks. The most important thing here is proof of issue. Because of this, it is difficult to use the PoS protocol with low-end machines.

Otherwise, PoS blockchains are generally resilient and reliable. They are 51% less susceptible to hacker attacks. This is partly because with the PoS protocol, traders are forced to keep their tokens “locked” in order to get more profit from creating new blocks. Therefore, Ethereum (ETH) has good reason to want to switch to PoS and leave PoW.

What are the concerns of Proof of Stake?

You should know that the fear of professionals regarding Proof-of-Stake (PoS) is justified. To begin with, this protocol much more complicated than Proof of Work (PoW). To be functional, it must rely on a plethora of additional rules and systems. These are far from easy to understand, making their impact on a network difficult to predict.

According to some analysts, Ethereum (ETH) has repeatedly delayed its transition to PoS because it is aware of the complexity of this protocol. After all, with this consensus, one mistake could lead to billions of dollars in losses in one minute. To that end, Ethereum (ETH) probably doesn’t really feel ready to move to PoS.

The transition of Ethereum (ETH) from Proof of Work (PoW) to Proof of Stake (PoS) referred to as “The Fusion” should allow the network to be faster. It turns out that Ethereum (ETH) can currently handle 15-45 transactions per second (TPS) while Bitcoin can only handle 4-6 TPS. PoS could handle around 50,000 TPS.

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