Bitcoin, Bitcoin (BTC), Blockchain, Carbon, Chris Larsen, Consensus, Energy, Energy Consumption, Ethereum, Federated, Low Carbon Networks, Low Energy Networks, Nikhil Mehta, Papers, PoS, PoW, Proof of Work, Proof-of-Stake, Ripple, Ripple Cofounder, Ripple's Chris Larsen, SEC, studies, XRP, XRP Design

Ripple Labs cofounder Chris Larsen has a bone to pick with bitcoin and crypto networks that leverage proof-of-work (PoW). Larsen’s latest write-up explains that the crypto industry needs to reconsider PoW because of the effects on the environment. The Ripple executive believes that other types of consensus algorithms have been effective at being secure while only “using a tiny fraction of the energy.â€

Ripple Cofounder Believes Crypto Networks Leveraging Proof-of-Work Should Consider Alternatives

While the global economy struggles after a year of Covid-19 lockdowns and business shutdowns, a great number of people are very interested in tackling climate change. Ripple Labs cofounder Chris Larsen has written a blog post about the environment and why the crypto industry should reconsider leveraging PoW. Larsen believes that if the Bitcoin (BTC) network’s verification model doesn’t get addressed, then at some point, it will lose out to a crypto asset network that does.

“With more individual investors and corporations taking significant bitcoin positions— PoW is heading for levels society will find tough to tolerate as the world works to avert a climate disaster,†Larsen’s blog post says. The Ripple cofounder notes that Bitcoin network participants have been committing to renewable energy and green sources of fuel, but Larsen stresses this is only “part of the solution.â€

Bitcoin, Bitcoin (BTC), Blockchain, Carbon, Chris Larsen, Consensus, Energy, Energy Consumption, Ethereum, Federated, Low Carbon Networks, Low Energy Networks, Nikhil Mehta, Papers, PoS, PoW, Proof of Work, Proof-of-Stake, Ripple, Ripple Cofounder, Ripple's Chris Larsen, SEC, studies, XRP, XRP Design
In a proof-of-work (PoW) system, miners secure the system and get rewards by using computational power and specialized machines. With proof-of-stake (PoS) systems, in some cases, the probability of securing a block is tethered to the amount of stake a validator has within the system. Like miners, validators collect a reward but are energy efficient because there’s no need for costly machinery and using significant energy resources. However, the security of PoS is far less proven in comparison to Bitcoin’s Nakamoto consensus or PoW systems.

To Larsen, consensus algorithms that leverage proof-of-stake (PoS) have “proven effective in securing their stored value while using a tiny fraction of the energy.†He understands that a consensus algorithm is necessary to validate transactions and keep the blockchain secure.

Larsen says that the crypto industry has had a decade to review these alternatives and also noted that many PoS and non-PoW coins have captured over 43% of the entire market capitalization.

“Today, non-PoW-based coins (including Ethereum’s anticipated switch) make up 43% of all cryptocurrencies by market cap, and the majority of new cryptocurrencies introduced today choose to eschew PoW. It’s clear which way the trend is moving,†Larsen explains.

The Ripple executive adds:

A Myriad of Studies Claim PoW’s Security Strength Is Superior to Federated and PoS Systems

Larsen’s blog post covers a comprehensive look at all the negatives involved with PoW consensus algorithms. However, the blog post doesn’t go over any negative arguments against the security and vulnerabilities associated with PoS and non-PoW coins. There’s a myriad of papers and studies that have been written over the last decade that indicates PoS algorithms have not proven to be as secure as PoW. For instance, Ripple’s Federated Consensus or any type of federated blockchain mechanism has been considered centralized in comparison to networks like BTC.

For instance, blockchain and fintech attorney Nikhil Mehta from Smithamundsen LLC has said that Ripple’s issues with the U.S. Securities and Exchange Commission (SEC) were invoked because the regulator thinks XRP is a security due to centralization.

“The SEC has already indicated that bitcoin and ethereum are not securities due to their decentralized nature, which is a hallmark of blockchain applicationsâ€, Mr. Mehta stressed in his paper. “Ripple, on the other hand, is viewed differently by the SEC, which has taken the position that the development and distribution of XRP was conducted by Ripple in a centralized way,†he added.

Further, Larsen’s paper fails to mention the PoS coin networks that have been attacked on various occasions during the last decade. One example is how Tron’s Steemit acquisition exposed vulnerabilities within delegated-proof-of-stake networks. PoW and PoS systems also have different attack costs, and one paper notes that the attack costs for a PoS protocol can be down to zero.

“In fact, if the attacker’s motivation is large enough (and this is common knowledge), he will succeed in his attack at no cost,†the paper highlights.

Ripple’s Chris Larsen addresses in his paper that he wouldn’t consider PoW models outdated, but that maybe these types of networks should be separated from those that provide low energy/low carbon verification systems.

“We should see PoW for what it is — a brilliantly designed technology that is becoming outdated in today’s world,†Larsen’s blog post details. “In no way does this suggest that bitcoin and other PoW cryptos themselves are outdated. Their widespread adoption speaks for itself. But they need to separate themselves from this early technology that is not built for today’s climate needs, and embrace low energy/low carbon alternatives to secure their ledgers,†the executive adds.

Plenty of Papers Have Knocked Bitcoin’s Use of Energy

There has been a myriad of papers, studies, and complaints in regard to PoW’s use of energy. Much of which has been highlighted more often during 2021’s thrilling crypto bull run. However, most of these arguments have been debunked and just recently one bitcoin miner claimed that “Bitcoin is one of the most environment-friendly financial networks.â€

Moreover, there are not that many academic papers that have found security loopholes, attacks, or vulnerabilities when it comes to Satoshi Nakamoto’s proof-of-work system. Still, Larsen believes that the energy issues could be the Bitcoin network’s Achilles heel in the future.

“I would argue that such a change is critically important for Bitcoin to remain the world’s dominant cryptocurrency,†Larsen says. “PoW’s current energy demands and carbon footprint are already unsustainably high, with Bitcoin alone consuming an average of 132 TWh a year (equivalent to roughly 12 million U.S. homes), and releasing an estimated 63 million tons of CO2 annually,†the Ripple Labs executive’s paper concludes.

What do you think Chris Larsen’s opinion about PoW networks like Bitcoin and reconsidering PoW consensus? Let us know what you think about this subject in the comments section below.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Du lịch nhật bản, hướng dẫn du lịch Nhật và đánh giá địa điểm Nhật Bản Japan travel news, japan travel guides, japan holiday destinations and japan reviews

RELATED NEWS

Ethereum Classic Rose 220% This Week, but Why?

Ethereum Classic, a seemingly forgotten cryptocurrency, reached the attention of many this week when its price skyrocketed out of the blue, but there might be some reasons behind it. Also, Bitcoin Cash and other Bitcoin-based forks enjoyed a healthy week in the green, alongside Dogecoin, whose price boosted on the news of Elon Musk appearing […]

Xem chi tiết: Ethereum Classic Rose 220% This Week, but Why?

Wealth Manager Vaneck Files Application for an Ethereum ETF, Aims for Cboe BZX Listing

Public documents show the wealth manager Vaneck has applied for an ethereum based exchange-traded fund (ETF). Vaneck Digital Assets’ Form S-1 filing with the Securities and Exchange Commission (SEC) was filed on May 7, while the company’s bitcoin-based ETF is still under review. While Waiting for Approval for Its Bitcoin ETF, Vaneck Files With the […]

Xem chi tiết: Wealth Manager Vaneck Files Application for an Ethereum ETF, Aims for Cboe BZX Listing

Real Estate Listings Accepting BTC Touch Record Highs, 14.3 Homes per 100,000 Accept Crypto

Bitcoin and the crypto economy have been making their way into the world of real estate these days. A recently published report shows that Realtor.com data indicates that people selling property for crypto assets have risen a great deal. Statistics show that there are 14.3 crypto accepting listings per 100,000 homes in the company database. […]

Xem chi tiết: Real Estate Listings Accepting BTC Touch Record Highs, 14.3 Homes per 100,000 Accept Crypto

Marathon Mines First OFAC Compliant Bitcoin Block

Marathon, one of the biggest bitcoin mining dedicated companies in the U.S. and Canada, has mined the first OFAC compliant bitcoin block, only accepting transactions that comply with the directives of this government office. This has caused a stir in libertarian circles, that argue this can be the start of censorship in the bitcoin blockchain […]

Xem chi tiết: Marathon Mines First OFAC Compliant Bitcoin Block

‘Gold Is Clearly Being Replaced by Digital Gold’- Precious Metal Markets Spike, Strategist Mike McGlone Calls PM Action ‘Meh’

Precious metals (PM) markets have been trading a bit higher in recent days, while cryptocurrency markets have been seeing gains as well. Spot gold prices have jumped to $1,805 per ounce, up more than 1.3% during the last 24 hours, while silver prices have increased by 2.5%. As PMs have gathered strength this week, crypto-asset […]

Xem chi tiết: ‘Gold Is Clearly Being Replaced by Digital Gold’- Precious Metal Markets Spike, Strategist Mike McGlone Calls PM Action ‘Meh’

‘Once in a While You Get Shown the Light’— Jerry Garcia Art to be Auctioned as an NFT for $1 Million

The now-deceased and former lead guitarist for the Grateful Dead, Jerry Garcia, will have a rare piece of his artwork sold as a non-fungible token (NFT) collectible asset. The NFT is a digital piece called “Gift†and is being sold by the Jerry Garcia Foundation, a nonprofit that supports “environmental, artistic and humanitarian causes through […]

Xem chi tiết: ‘Once in a While You Get Shown the Light’— Jerry Garcia Art to be Auctioned as an NFT for $1 Million

Latam Based Exchange Bitso Gets Unicorn Status After $250 Million Funding Round

Bitso, one of the biggest cryptocurrency exchanges in Latam, has reached unicorn status after a funding round that managed to raise $250 million with the participation of some big names in the cryptocurrency world. The company announced it would use these resources to expand its operations and keep growing in its core markets, including remittances. […]

Xem chi tiết: Latam Based Exchange Bitso Gets Unicorn Status After $250 Million Funding Round

‘Gold Is Clearly Being Replaced by Digital Gold’- Precious Metal Markets Spike, Strategist Mike McGlone Calls PM Action ‘Meh’

Precious metals (PM) markets have been trading a bit higher in recent days, while cryptocurrency markets have been seeing gains as well. Spot gold prices have jumped to $1,805 per ounce, up more than 1.3% during the last 24 hours, while silver prices have increased by 2.5%. As PMs have gathered strength this week, crypto-asset […]

Xem chi tiết: ‘Gold Is Clearly Being Replaced by Digital Gold’- Precious Metal Markets Spike, Strategist Mike McGlone Calls PM Action ‘Meh’

Crypto Analytics Firm Coin Metrics Raises $15 Million, Goldman Sachs Leads Funding Round

Venture Capitalist Proposes a Single Decentralized Crypto as a Solution to Boost Africa’s Inter-Regional Trade

The $70B Meme Coin Market: Dogecoin Skyrockets Past a Half Dollar, DOGE Market Cap Eats Into BTC Dominance

Bitcoin Cash Slated for May 15- Upgrade to Bring Improvements for Users and Merchants

How Did Satoshi Nakamoto Remain Anonymous? A Detailed Look at the Bitcoin Creator’s Opsec

It’s Time: UFC to Launch Fan Token for Millions Around the World

Climate Change Targets Bitcoin Mining: NY Lawmaker Proposes 3-Year Moratorium on Mining Operations in the State

Bitcoin Cash Slated for May 15- Upgrade to Bring Improvements for Users and Merchants