50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

Bitcoin could lose dominance, Ripple's co-founder opines

Published 04/25/2021, 03:11 PM
Updated 04/25/2021, 03:30 PM
© Reuters.  Bitcoin could lose dominance, Ripple's co-founder opines
BTC/USD
-
XRP/USD
-

A recent write-up released by Chris Larsen, Ripple's co-founder, shows that the crypto executive has a bone to pick with Bitcoin and altcoins that leverage proof-of-work (PoW) consensus mechanism.

According to the write-up, Larsen unequivocally stated that the crypto world, Bitcoin especially, needs to abandon the PoW consensus mechanism because of its effect on the environment.

The executive claims that there are a ton of mechanisms better and more energy-efficient than the PoW — proof-of-state (PoS) one of those.

Crypto projects that leverage proof-of-stake has been known to be more efficient and consume only a tiny fraction of energy, the co-founder asserts.

Citing Ripple's consensus mechanism, Federated Consensus, as an example, Chris Larsen revealed that the network has been able to validate over 69 million transactions on a public ledger for nine years while using an energy equivalent of about 50 United States homes annually, way less than what Bitcoin and other PoW-based networks use in two quarters.

Ethereum’s recent decision to segue to the PoS mechanism as part of its forthcoming upgrade is proof that the PoW may not be the best mechanism for networks seeking global adoption.

Continue reading on BTC Peers

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.