From Ethereum creator Vitalik Buterin’s perspective on Bitcoin’s future to a new partnership at Ripple, here’s a look at some of the stories breaking in the world of crypto.
Bitcoin and Ethereum
In a new interview on the Blockchain Insider podcast, Ethereum creator Vitalik Buterin weighs in on the future of Bitcoin and Ethereum. According to Buterin, Bitcoin’s Proof of Work system is fundamentally flawed compared to Proof of Stake, in part because of the amount of energy needed to verify transactions.
“These two mechanisms are kind of similar because they both use economic resources to gatekeep what level of participation you can have in the network. And that’s something which is necessary because if you don’t have that kind of economic gatekeeping, then one participant can just pretend to be a billion fake participants and then take over the entire network. And Proof of Work does that. Proof of Stake does that, in our opinion, better for a couple of reasons.
One of them is that with Proof of Work, in order to prove that you actually have this computing power, you have to basically turn on these computers and have them solve mathematical puzzles 24/7. And this leads to huge amounts of energy consumption. I think Bitcoin is at the point of exceeding probably the majority of the world’s countries’. And Ethereum is definitely not nearly at that point, but it’s still much higher than I would like it to be.
And Proof of Stake is much more efficient because, instead of proving that you have computers by using them 24/7, to prove that you have coins, you just need to basically sign a digital signature with the same cryptographic key that has those coins.