Yakovenko explained why Bitcoin needs to change to the PoS algorithm with the following arguments :
- He explained how Bitcoin’s proof-of-work (PoW) may adversely affect the leading cryptocurrency in the future.
- He cited the energy efficiency of PoS blockchain- based Solana in comparison to Bitcoin.
- Yakovenko said that even among the PoS-based cryptocurrencies, Solana is one of the most energy efficient ones.
- A single Solana transaction is equivalent to about just two Google searches worth of energy.
- Yakovenko opined, in the coming future, most of the networks used in crypto space will be based on PoS consensus. In such a scenario, if Bitcoin doesn’t make a timely transition to PoS then its usage will decline.
Besides Yakovenko, others have also been criticizing Bitcoin for its energy-intensive nature and the need to transition to the PoS model.
- In May 2021,
Elon Musksuspended the purchase of Tesla vehicles using Bitcoin citing the concern over the use of fossil fuels for transaction and mining of Bitcoins.
- The non-profit organization of Firefox web browser, Mozilla discontinued the acceptance of PoW-based cryptocurrency donations in April 2022 and said that it would only accept donations of PoS digital currencies.
- Wikimedia foundation also recently stopped accepting crypto donations altogether citing environmental concerns in April.
- Global environmental network Greenpeace with the help of Ripple Labs co-founder Chris Larsen, recently started a campaign ‘Change the code, not the climate’ to make Bitcoins more environmentally friendly.
- The World Economic Forum shared a video on Twitter on April 27 exhorting Bitcoin to change the way it codes. WEF said that experts believe that a change in bitcoin’s consensus mechanism can almost eliminate its environmental impact.
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