JAKARTA – Chris Larsen as one of the founders of crypto Ripple (XRP) expressed his concern about the Bitcoin mining industry which is increasingly mushrooming in the US. Larsen called on miners to abandon the Proof of Work (PoW) consensus algorithm. Larsen conveyed the insistence in his blog post on the Medium platform.
The XRP founder revealed that US-listed mining companies such as Riot Blockchain, BIT Mining, and Marathon Digital Mining would be better off staking their coins. By staking, they will receive a reward based on the pro-rate hash power.
According to U.today, the code change will involve taking a snapshot of their hashrate to ensure that they will be fairly compensated for investing in the equipment. Larsen assesses the transition from mining to staking will provide greater benefits for them than the risks.
“Under such a proposal, miners would gain additional economic benefits — earning the same income for significantly less operating costs… While the process of enacting this plan by consensus across the bitcoin community would take time, the benefits far outweigh the risks. ," said Larsen.
In addition, Larsen also believes that the Chinese government has the potential to seize control of the Bitcoin network because of its dominance in the mining industry. However, Larsen's opinion was refuted by the cryptocurrency community.
Previously, Larsen had encouraged developers and miners to switch to a new mechanism, namely Proof of Stake. Because PoS does not have a big impact on the environment. This is different from PoW which is considered to have expired although it is very sophisticated but causes considerable environmental damage, as reported by Coindesk.
“Cryptocurrencies that use PoW should consider changing the code to another validation method like Proof-of-Stake (PoS) or Federated Consensus (or something that hasn't been developed yet),” Larsen wrote.
“We have to see PoW for what it is — a brilliantly designed technology that is becoming obsolete in today's world," wrote Larsen. "They [PoW networks] need to... embrace low-energy/low-carbon alternatives to secure their ledger, said the Ripple co-founder.
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