Niklas Nikolajsen - founder of cryptocurrency brokerage firm Bitcoin Suisse, predicts that Bitcoin (BTC) will turn to Proof-of-Stake (PoS) after the Ethereum (ETH) network proves the success of the algorithm. this.
The current Bitcoin consensus algorithm is Proof-of-Work (PoW) - the pioneering concept that actually existed before Bitcoin, and has since become an inseparable concept for cryptocurrencies. - "may change in the future," argues Nikolajsen.
In segment of an interview conducted for a German television documentary - recorded in October 2019, but only made public on April 6, Nikolajsen said:
“Bitcoin's switch to Proof-of-Stake is not planned, but the second largest cryptocurrency, Ether, will switch to the Proof-of-Stake algorithm - which requires very little power, in a few months. already. I am sure, once this technology is proven, Bitcoin will get used to it as well. ”
"Once it proves that Proof-of-Stake works, it's a superior system compared to Proof-of-Work," he added.
What does stake have?
In blockchains using the PoS system, nodes in the network participate in block authentication, instead of mining as they do for PoW. For PoS, the determination algorithm will choose a block validator based on the number of tokens a stake has staked in their wallet - i.e. deposited as collateral to compete for more blocks. Follow on the chain.
Nikolajsen's prediction of Bitcoin's switch to PoS comes amid much discussion about the huge amount of electricity needed to sustain mining on the current network.
He disagreed with the statement that Bitcoin mining consumes the same amount of electricity as small countries and also emphasized that the energy intensity of mining is a smaller issue than where the energy is generated. how and how it came out sustainably.
Moreover, the energy consumption of the gold production process must be recognized equally, Nikolajsen said, as well as in the existing banking system and technology industry:
“Any city in the world does not have a 100-storey, brightly lit bank tower with millions of different colors throughout the night, and their financial systems, computers, server rooms. How much power does Facebook consume? They have 21 huge data centers around the world, perhaps even more than Bitcoin. The banking system certainly consumes more energy. ”
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According to CoinTelegraph
Translated by ToiYeuBitcoin