Bitcoin Needs to Adopt an Upgrade Similar to Caradano’s to Survive: Charles Hoskinson
With energy sources getting expensive rapidly, the environmental impact of validating PoW crypto-assets is being studied intensely.
The White House’s latest report mentions the excessive usage of energy by several industries, including cryptocurrency mining, was brought up by IOG CEO Charles Hoskinson. He went on to say that the paper, published on the order of President Joe Biden, essentially seeks to ban Bitcoin, which is based on Proof-of-Work (PoW) consensus mechanism, due to energy consumption.
Cardano’s Ofelimous to the Rescue?
In a new video update, the Cardano Chief said,
“The EPA and the DOE are going to start talking to crypto companies to basically tell them to change the way their cryptocurrencies work. In other words, Bitcoin should be banned.”
However, leveraging the Cardano protocol, Ofelimous, could help Bitcoin to avoid the regulator’s ire and survive as a cryptocurrency. For the uninitiated, Ofelimous is a proof-of-useful-work (PoUW) protocol, and its main purpose is to minimize the carbon footprint of PoW chains, such as Bitcoin.
Given the adoption scale of the digital asset space, Hoskinson believes carbon scoring of crypto mining by authorities across the world is inevitable. While reinstating his stance that PoS is highly superior to PoW, the exec noted,
“It is very clear that there are people in this administration and various political parties throughout the world that really do want to start carbon scoring the mining of cryptocurrencies. Always taking the position that proof-of-stake is a vastly superior consensus mechanism in many ways assuming you can address the network design requirements and the security requirements which is why we spent seven years of innovation with Ourobouros and brought it into the market.
He even went on to say that the report accurately reflects the “massive” advantage of PoS systems in terms of usage.
White House Climate Report
The White House Office of Science and Technology Policy (OSTP), in a recent report, has stated that crypto’s contribution to energy usage and greenhouse gas (GHG) emissions is significant. The document weighed in on the uses of blockchain technology to aid in climate protection and suggested ways to reduce or mitigate the environmental impact of digital assets.
It further speculated that crypto assets use almost 50 billion kilowatt-hours of energy per year in the United States.
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I’m a journalist who specializes in investigative reporting and writing. I have written for the New York Times and other publications.