One of the most talked about issues last year was the high energy usage of the Bitcoin network. Tesla Inc. TSLA CEO Elon Musk Bitcoin in its current form stirs up the idea that it is harmful to the environment.
However, mining companies have been studying the use of renewable energy for some time, and the latest report shows that 58% of the energy used by the Bitcoin network comes from renewable sources.
In 2022, the discussion seems to have shifted from using sustainable energy to a full overhaul of the mining consensus. of bitcoin code.
switching ethereum Ethereum/USD From Proof of Work to Proof of Stake, took place last monthalso stimulates a demand for change.
PoW was the first cryptocurrency mining consensus, adopted by many pioneering cryptocurrency projects and popularized by Bitcoin. PoS, on the other hand, was introduced with his Peercoin release in 2013. Energy consumption has made it a popular option for new cryptocurrency ventures.
The hype surrounding Ethereum’s move to PoS has reignited the debate over Bitcoin’s hard fork towards PoS consensus.
In this article, I will list some reasons why Bitcoin is very unlikely to move to PoS.
Immutability refers to the fact that the current data on the blockchain cannot be changed or tampered with and these data records are irreversible.
Bitcoin does this by using distributed ledger technology and blockchain timestamps to simultaneously maintain identical data on multiple computers around the world.
By hashing transactions into a continuous chain of hash-based proof-of-work, the network timestamps the transaction, creating a record that cannot be changed without repeating the proof-of-work.
Even if mining (maintenance of the PoW system) is required for “redoing the proof of work”, it will still be difficult because there are more than 13 years of data on the blockchain that is running 24 hours a day. .
Transferring this huge amount of data from an existing chain to a new chain using PoS is very difficult.
In contrast, the Ethereum integration was only completed last month after years of discussions between Ethereum developers and other stakeholders.
Ethereum was born in 2015 while Bitcoin was born in 2009.
Making significant changes to an entire system that was once meant to be immutable becomes much more difficult.
Switching from PoW to PoS is technically possible, but very difficult and impractical, not to mention extremely uncomfortable for the mining community.
Bitcoin Mining Equipment Cost Decreases Dramatically
To mine bitcoin, miners use application-specific integrated circuit (ASIC) miners, highly specialized equipment, to perform the complex calculations required to mine cryptocurrencies, the extremely expensive It should correspond to the hash rate.
you have a few options bitcoin miner to mine Other Digital Assets.
ASIC miners were made to focus on a single kind of hashing algorithm, using SHA-256 in the Bitcoin context, so it’s not just a matter of moving from one PoW asset to another. There is none.
While that blockchain has its own strengths and weaknesses, Bitcoin Cash BCH/USD It’s the only realistic option.
It is questionable whether a massive influx of Bitcoin miners would be profitable or even practical for other blockchains that use SHA-256 currencies, especially many lesser-known coins.
Get majority approval for this action
For this plan to have any chance of success, at least half of the network’s stakeholders must agree to support a fundamental change in the ecosystem.
Convincing miners, especially those who have spent hundreds of thousands or even millions of dollars on mining farms, to support this move is very difficult.
Creating and running mining equipment using greener energy sources
In addition to the enormous energy requirements of Bitcoin mining and trading in general, the Bitcoin network, like its associated e-waste, offers greater security due to its overall hash rate.
This affects how well 51% of attacks can be prevented.
Massive use of renewable energy, or perhaps nuclear power, is a key strategy to help decarbonize Bitcoin.
In addition, innovative methods must be developed to make better use of the waste heat generated by machines.
As a result, especially in cold regions, miners are implementing creative techniques to effectively harness this energy.
But for Bitcoin to become a truly green digital currency, much more needs to be done to make better use of these resources.
Efficient management and reduction of associated e-waste is also important.
To maintain stability, the Bitcoin hash rate will need to increase as the network is expected to grow.
If this does not lead to significant power savings built into future machines, the overall energy intensity of mining equipment will increase.
Finding solutions to these environmental problems is more rational and practical than completely changing Bitcoin’s consensus scheme.
Not only are network outages likely to be reduced, they are also less expensive and less polarized. for the community.