Ripple Co-Founder Chris Larsen Wants Bitcoin to Switch to Green Consensus Algorithm

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The biggest critics of Bitcoin mining have always listed energy use as the bane of digital asset mining and Ripple co-founder Chris Larsen believes he might have a solution to the problem. in his most recent blog. Larsen, who is also the executive chairman of Ripple Labs, suggests that Bitcoin miners move away from the existing, power-hungry Proof of Work (PoW) algorithm in favor of the more energy efficient Proof of Stake (PoS) protocol. . He added that these miners should see his plan as “a net positive for their longevity” while adding his perspective on how the change could benefit mining companies.

Larsen notes that the only way to move to a low-power consensus can be achieved by changing the network code – a change that would significantly disrupt the nature of the Bitcoin network.

While this is an early stage (and not perfect at all), I think if miners continued to receive BTC incentives WITH a code change, it might get them on board. Let’s discuss. 2/2

– Chris Larsen (@chrislarsensf) December 9, 2021

Proof of work is the consensus algorithm that secures Bitcoin transactions on the blockchain. While the Bitcoin network is the most secure and reliable, the amount of energy required to mine Bitcoin is causing endless debate in the crypto space.

“The least disruptive proposition would be to simply take a snapshot of the current hash rate of existing miners and then prorate miners for the hash power through 2140,” Larsen said in his Medium article. “Existing miners would simply have the rights to future Bitcoin rewards without having to make additional investments in mining platforms.”

According to Larsen, his proposal is fair because it rewards miners for their efforts to secure the Bitcoin network over the years with lower operating costs. “Under such a proposal, miners would gain an additional economic advantage – by earning the same income with significantly lower operating costs,” he concluded. For better network security, Larsen writes that the proposal can be amended to include a staking mechanism.

The billionaire also suggested that the network could symbolize future rewards for minors. He said such an upgrade would be lucrative for miners, especially as the entire network shifts to all-green finance technology.

There is a very low chance that this proposal will be implemented, as Bitcoin mining companies now planning to increase their share of the hash rate would lose significant revenue. A multitude of US mining companies are already studying the use of green energy sources, for which a switch to PoS would make little sense. There is also an inherent problem with the proof of stake model and that is its impact on the security of the blockchain, an issue that has no solution unless there is a ready modification to the proposal. suggested by Larsen.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting Founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

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