Ripple’s Co-founder Persuades BTC Miners To Accept Proof Of Stake
The conflict between Proof of Work and Proof of Stake transcends whispers. Now, it has become a huge discussion by top executives from Ripple this time. A big wig from Ripple has come up with a plan to persuade Bitcoin miners to adopt Proof of Stake. Chris Larsen, the co-founder of Ripple, believes that his roadmap will convince Bitcoin miners to leave Proof of Work, which is not sustainable.
He believes that the plan could positively impact mining firms. And he wants to do precisely that in a bid to boost the share prices of specific mining rigs by dishing out an irresistible offer in the form of incentives to BTC miners.
Proof Of Work Is Not Sustainable
Proof of Work is a consensus mechanism behind all Bitcoin transactions on the blockchain. This algorithm provides the security that all users feel while using the Bitcoin blockchain. The downside is that it comes at a cost, mining energy. The huge price the network has had to deal with in terms of environmentalist climate debates and within the crypto ecosystem continues. Climate experts feel that the underlying code behind Bitcoin infrastructure should be changed to one that consumes less energy. In other words, the consensus algorithm should be similar to what other alternate coins use to run their protocols.
Switching To Proof Of Stake Is A Big Deal.
While the possibility of switching to POS for Bitcoin miners is still debatable, Ethereum is halfway there. Larsen feels that a rapid change in consensus might cause a severe backlash from mining organizations invested in Bitcoin. But his plan is ambitious, saying that energy consumption can be reduced when block rewards are limited to 900 Bitcoin every 24 hours. He also said that the extra 2.1 million unmined Bitcoin must follow a redistribution process.
He believes that Bitcoin miners can profit from the redistribution process now and in the future, which is the year 2140 when Bitcoin will be thoroughly mined. He believes that present miners can claim future Bitcoin rewards without incurring another energy cost or purchasing sophisticated mining rigs.
Larsen opined that Bitcoin miners investing in mining rigs do that for economic advantage. His plan caters to them by not only providing a future financial benefit but giving them an opportunity to be rewarded for their contributions in what he termed “lucrative gains.” Besides, he believes miners will get the same profits by spending less on power bills and other investment costs once his lofty plan is implemented.
The Role Of Proof Of Stake in The Green Future
As a way to incentivize Bitcoin miners to move to an energy-conserving mechanism, he suggests that future rewards would be non-fungible, personal, and tokenized. He feels that such digital assets would provide substantial economic gains for Bitcoin miners. And, of course, transform the sentiment around Bitcoin as a climate disaster into a technology that supports and improves the climate.
He opined that the fintech organizations in the future would promote and support green. A couple of U.S. stock mining organizations such as Hive Blockchain Technologies, Riot Blockchain, Marathon Digital Mining, Bitfarms, and others run energy-efficient frameworks.
The ambitious proposal has a tough road ahead to persuade Bitcoin miners to add to the hash rate to gain massive wealth. Also, the proposal’s highly controversial dock size change might lead to a PoW hard fork.
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