“The Argument for Proof-of-Stake Bitcoin”
Can a code change everything?
Mining cryptocurrencies uses a lot of power. Naturally, this is a concern for the environmental crisis hovering over earth. It turns out that the same code that caused the environmental panic, might fix it.
As it stands, Bitcoin is proof of work. By switching to a 'proof-of-stake' model from a 'proof-of-work' model, Bitcoin can hope to significantly reduce energy requirements.
On Bitcoin, proof-of-work uses an algorithm that adds a new block to the chain every 10 minutes using a node. The algorithm takes into account that the hash computations get harder as the miners add more blocks to prove said work. If miners are moving slowly, the has rash moves slowly, blocks are more easily solved. With a low hash rate, Bitcoin is both more profitable and better for the environment.
Developers believe changing the underlying blockchain code can cut Bitcoin energy consumption by 99%. This new change is called proof-of-stake. Switching to proof of stake is Bitcoins only way of being environmentally sound. This is necessary, as the Bitcoin network consumes more electricity than multiple nations combined. As Bitcoin prices are starting to trend upwards once again, the popularity of the world’s.
Without proof-of-stake, Bitcoin is at the expense of the world. Bitcoin switching to a 'proof-of-stake' model from a 'proof-of-work' model, can drastically help.
As proof-of-work is a mechanism that demands all computers on the network execute complex mathematical transactions it also requires a large amount of computing power to sustain operations.
Proof-of-stake allows a users to act as a transaction validator, and replaces proof-of work. Using a node, validators staking token holdings towards developing the ecosystem of the specific blockchain. The validator is rewarded with a percentage of the staked tokens, and rewarded in blocks the same way. This removes much need for power and is the main use cause for proof-of-stake.
The node is officially in Bitcoins court, now.