Cryptocurrencies continue to be talked about. But as the Ethereum blockchain prepares to migrate to Proof-of-Stake (PoS), Vitalik Buterin confesses in Noah Smith’s microphone and his statements could worry more than any!
The future of bitcoin (BTC) according to Vitalik Buterin
Vitalik Buterin is one of the iconic figures of the crypto ecosystem. Although the sector is struggling to get out of the downward trend, the young entrepreneur has a series of projects. Recently, at the microphone of Noah Smith, the latter answered many questions and gave his opinion on the future of crypto, and in particular bitcoin.
In fact, he thinks people have a hard time understanding the true meaning of cryptocurrencies and what they stand for. As a result, they have become accustomed to following the trend. Their reactions vary depending on the situation: optimistic when prices are up and uncertain when prices are falling.
However, he is more concerned about the future of bitcoin (BTC). As we know BTC uses Proof of Work consensus. However, it requires a lot of energy resources, which harms our environment.
However, if emissions eventually reach close to zero, bitcoin could face another big problem. Indeed, reducing emissions will benefit the environment. However, the Bitcoin blockchain could suffer because it now has to work hard on its security.
Proof-of-Stake, the solution to reduce costs?
In the last few months, the cryptosphere has been shaken by the announcement of the Ethereum merger. Right now all eyes are on Vitalik Buterin who is sort of the mastermind behind it all. However, it is possible that some people do not understand the real purpose of this transition.
During his interview, the co-founder of the second largest blockchain explained the peculiarities of proof involved. According to him, the level of blockchain security depends entirely on the entry costs, as that is what an attacker has to pay to attack. So, unlike the Proof of Work (PoW) which has average entry costs and average ongoing costs, consensus Proof of Stake (PoS) entry costs are high and ongoing costs are low.
Moreover, in PoW, one can only respond to an attack by changing the consensus algorithm. The inevitable result of this is the burning of mining hardware, good or bad. And yet in PoS, the protocol can be done by burning the attacker’s assets while protecting the ecosystem.
Therefore, Vitalik Buterin is worried about the security of bitcoin (BTC) in the long term. According to him, blockchain security will depend entirely on fees. However, BTC’s income level has not really changed over the past five years unlike Ethereum. In addition, he might consider moving to proof of commitments. However, this could be very difficult.
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The world is changing and adaptation is the best weapon to survive in this turbulent world. As a crypto community manager at the base, I am interested in everything directly or indirectly related to the blockchain and its derivatives. To share my experience and express an area of interest to me, there is nothing better than writing articles that are informative and entertaining at the same time.