Researchers from Stanford University have found that proof-of-stake (PoS) can complement Bitcoin less than a year after PoS became the consensus mechanism for the Ethereum blockchain. The researchers found a “natural synergy” between the two by building an extra layer of protocol that shares the security between Bitcoin and PoS, which Tsè said will become very strong, giving users strong security properties. The PoS blockchain on its own has two major limitations; due to it being based on proof of “stake,” it is hard to start a new blockchain due to the need to attract stakers. Tsè envisions developers being able to focus on building the application rather than on recruiting stake. On the other hand, pushbacks towards building on Bitcoin have been the energy consumption associated with such protocols. Bitcoin’s bad reputation for energy consumption makes it difficult to explain to the next generation of students; however, Tsè says that the important thing is to not only look at the energy being consumed but also the “why” behind the consumption. Without energy, there is no security or value. The researchers believe that developers can create higher value use of that energy. Tsè highlighted security as one of Bitcoin’s most valuable assets and pointed to new projects like Bitcoin Ordinals leveraging that security. Recently, Bitcoin NFTs have been sweeping the crypto space, causing equal amounts of hype and skepticism about whether they are good for Bitcoin.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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