Bitcoin must move away from proof-of-work technology: Ripple’s Larsen – Markets Insider

Bitcoin must move away from proof-of-work technology: Ripple’s Larsen – Markets Insider


Screenshot 2021 04 23 at 13.40.22
Ripple co-founder, Chris Larsen.

  • Ripple’s cofounder thinks bitcoin developers should be concerned about its proof-of-work technology.
  • He suggested shifting to a more carbon-neutral method like proof-of-stake or federated consensus.
  • “Such a change is critically important for bitcoin to remain the world’s dominant cryptocurrency.”
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

The conversation around bitcoin’s environmental threat seems to be escalating as more people call out its impact on the climate.

Chris Larsen, Ripple’s co-founder, has suggested bitcoin should surrender its core proof-of-work (PoW) technology that is used in the mining process. He said it should instead use other methods such as proof-of-stake (PoS), federated consensus, or another technology that is yet to be developed.

PoW is an algorithm in the blockchain technology used to confirm bitcoin transactions and produce new blocks on the chain. It is an energy-intensive process, and even a few transactions on the network can have as much of a carbon footprint as driving a gas-powered sedan for 1,000 kilometers.

Bitcoin running on the PoW algorithm has led it to consume an average of 113.8 terawatts per hour, roughly equivalent to energy consumed by 12 million US homes, and release an estimated 63 million tons of CO2 annually, Larsen said in a blog post this week.

The PoS network, that Ethereum 2.0 runs
Source…