Ripple’s co-founder Chris Larsen argued that bitcoin code developers need to consider throwing cryptocurrency evidence at the worker consensus mechanism.
In a blog on Wednesday, Larsen outlined the most important vulnerabilities associated with PoW, and pointed to the growing concern over Bitcoin’s carbon footprint. For Proof of Work-based currencies like Bitcoin (BTC), the leader said he should consider changing the token to carbon neutral verification methods as evidence of effort or federal consensus, or anything else yet to be developed.
“I would argue that such a change is crucial for Bitcoin to be the dominant cryptocurrency in the world.” The current energy needs for the proof-of-work and carbon footprint are already unacceptably high, with Bitcoin using an average of 132 terawatt hours per year, which is equivalent to about 12 million US homes, ”said Larsen.
The co-founder noted that non-PoW altcoins, including Ethereum’s projected transition to Proof of Stake, make up 43% of all market capitalization cryptocurrencies, with many new currencies chosen to avoid PoW. “It is clear in which direction this direction is headed,” he said.
Larsen stated that the XRP ledger had used federal consensus to secure the network and verify transactions for nearly nine years. “It has closed more than 62 million general ledgers without interruption, and it consumes energy equivalent to only 50 US homes annually,” he said. Some of the successful new altcoins, such as Binance Coin (BNB), also use the PoS version, according to Larsen.
Larsen’s comments came amid a significant decline in the dominance of Bitcoin in the cryptocurrency markets. In March, the Bitcoin Dominance Index fell below 60% for the first time since October 2020. As the altcoin market recovered, Bitcoin continued to lose market share, with the dominance index dropping to 50.7% on Wednesday.
There has been a longstanding debate between advocates of proof of work and the point of sale, with advocates of the latter citing the energy costs of mining as the biggest problem facing proof of work. The Bitcoin and Monero communities – some of the biggest supporters of PoW – often claim that PoS cannot achieve the level of security and decentralization of PoW.
Niklas Nicolaisen, founder of Swiss crypto broker Bitcoin Suisse, has predicted that Bitcoin will migrate to PoS when the Ethereum network proves the algorithm’s success.