On September 1, Vitalik Buterin gave an interview to economics author Noah Smith and the Ethereum co-founder talked a lot about bitcoin and the long-term security of the network. Buterin also discussed the crash in the cryptoeconomy and he insisted that he was “surprised the crash didn’t happen sooner.”
Buterin: Bitcoin is failing to achieve the level of revenue required to secure what could be a multi-billion dollar system.
Ethereum co-founder Vitalik Buterin recently made a statement during a interview with economic author Noah Smith and Buterin had a lot to say about the current state of crypto. Smith first asked Buterin what he thought of the recent crypto crash and Buterin replied that he thought the crash would have happened earlier.
“I was surprised the crash didn’t happen sooner“, said Buterin during the interview. “Normally, crypto bubbles last around 6-9 months after breaking above the previous high, after which the rapid drop comes quite quickly. This time the bull market lasted almost a year and a half“, added the developer.
Buterin also talked a lot about the company’s strategy. Bitcoin (BTC) and The Merge, Ethereum’s highly anticipated transition from proof-of-work (PoW) to proof-of-stake (PoS). He claims bitcoin falls short when it comes to revenue from block subsidies.
“In the long term, bitcoin’s security will come entirely from fees, and bitcoin is simply failing to achieve the level of revenue required to secure what could be a multi-billion dollar system. “, said Vitalik Buterin.
When Noah Smith asked Buterin about Bitcoin’s use of energy, the Ethereum co-founder noted that PoS will not only reduce environmental damage, but it’s also about maintaining security. of the blockchain.
“A consensus system that unnecessarily costs huge amounts of electricity is not only bad for the environment, it also requires the issuance of hundreds of thousands of security certificates. BTC or ETH every year“, underlined Buterin. “Eventually, of course, emission will decrease to near zero, and at that point it will stop being a problem, but Bitcoin will then start to deal with another problem: how to make sure it stay secure.Buterin added:
And those security motivations are also a really big driver behind Ethereum’s move to proof-of-stake.
The Ethereum co-founder insists that the proof-of-work era is not viable and will not return.
Buterin understands that Bitcoin will not change its consensus mechanism, at least for now, but if the chain were attacked, he thinks the discussion of a hybrid PoS algorithm could come into play.
“Of course, if Bitcoin is actually attacked, I expect the political will to move to at least hybrid proof-of-stake will appear quickly, but I expect it to be a painful transition.“, the software developer told Smith. The Ethereum co-founder said he thinks people are getting the wrong idea about proof-of-stake giving the biggest stakeholders control of the network.
“There are also people who try to claim that PoS allows large stakeholders to control the protocol, but I think these arguments are just plain wrong“, said Buterin. “They are based on the misconception that PoW and PoS are governance mechanisms, when in reality they are consensus mechanisms. All they do is help the network agree on the correct channel.”
Buterin went on to note that he thinks the first version of PoW was a good start, but today he thinks it’s outdated, dying out, and probably won’t be coming back. .
The start of the highly democratized proof-of-work era was a beautiful thing, and it helped immensely to make cryptocurrency ownership more egalitarian, but it is not sustainable and it will not return.
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Ethereum Co-Founder Vitalik Buterin Surprised Crash Didn’t Happen Sooner
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