Ethereum founder Vitalik Buterin spoke at the StartmeupHK virtual festival on Thursday, where he touched upon the current topic of bitcoin energy consumption and its impact on the environment. In the upcoming transition of Ethereum to the Proof-of-Stake consensus mechanism, he sees a way to rid the cryptocurrency of its reputation as an ecological disaster.
“Proof-of-Stake is a solution to the problems that bitcoin causes for the environment. PoS requires significantly fewer resources to maintain the network, ”said the developer.
The Ethereum Foundation estimates that Ethereum’s power consumption will decrease by 99.95% with the transition to Proof-of-Stake. Experts claim that the consumption of the Ethereum 2.0 network in theory will be about 2.62 MW. This makes it comparable not with a country, but with a small town. Ethereum now uses as much electricity as a mid-size state, they add. At the same time, the Ethereum Foundation admits that Proof-of-Stake “is still in its infancy and is not as tested in practice as Proof-of-Work.”
“We thought the Proof-of-Stake implementation would take one year. It actually took six years, ”Buterin said.
Cardano founder Charles Hoskinson fully supports his former ally in relation to Ethereum.
“One of the big secondary issues in ETH 2 is governance. It is unclear how the system will evolve and be managed after the founders step away from the project or lose influence. The larger the system becomes, the slower it develops. Look at Bitcoin, ”he said.
Hoskinson likened Ethereum to a large cruise ship unable to make quick maneuvers. Thus, he opposed Ethereum to his own project, which with the transition to the Voltaire version will become a “self-sustaining network”.
“For the Cardano network to achieve true decentralization, it will need not only the distributed infrastructure introduced in the Shelley era, but also the ability to maintain and improve over time in a decentralized manner,” Hoskinson said.
According to CoinShares, ADA-based stock products were the most in demand among investors last week with a net inflow of $ 10 million. Bitcoin funds experienced outflows of $ 110.9 million during the same time, and $ 12.6 million of ether outflows. investors, CoinShares write:
“This could indicate that investors are actively choosing Proof-of-Stake coins, taking into account their environmental impact.”
During the same speech, Buterin commented on his decision to crash the Shiba Inu market, half of which he received from the creators of the token as a gift. He stressed that this action is consistent with his view of cryptocurrencies as an improved version of the existing monetary system.
“This is an opportunity to transform the meme bubble into something that will really benefit people,” he said.
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