Can Bitcoin Hard Fork Prove Consensus?  What will it mean for Apex Crypto - Bitcoin (BTC/USD), Bitcoin Cash (BCH/USD)

Can Bitcoin Hard Fork Prove Consensus? What will it mean for Apex Crypto – Bitcoin (BTC/USD), Bitcoin Cash (BCH/USD)

Leading Cryptocurrency Bitcoin Bitcoin / US Dollarwhich still dominates the market today, has faced many difficulties along the way, most related to the Proof of Work (PoW) mining consensus and Subsequent environmental impact.

One of the most talked about issues last year was the high power usage of the Bitcoin network, with its likes Tesla Corporation TSLA Executive Director Elon Musk Fueling the idea that Bitcoin in its current form is harmful to the environment.

However, miners have been looking into the use of renewable energy for some time, and the latest reports indicate that 58% of the energy used by the Bitcoin network comes from renewable sources.

In 2022, the discussion appears to have shifted from using sustainable energy to an overhaul of the mining consensus, with a powerful lobby and Proof of Stake (PoS) proponents calling for a change in The Bitcoin Code.

transformation from Ethereum ETH / USD From proof of work to proof of stake, What happened last monthIt also fuels demands for change.

Since PoW is the original cryptocurrency mining consensus, it has been adopted by a number of leading crypto projects and became popular with Bitcoin, while PoS was introduced with the release of Peercoin in 2013, and although not preferred, its scalability and low consumption made it a Energy is a popular choice for new cryptocurrency projects.

The hype surrounding Ethereum’s switch to PoS has reignited the debate about the Bitcoin hard fork towards the PoS consensus.

In this article, we list some reasons why Bitcoin is extremely unlikely to migrate to PoS.

Bitcoin stability

Immutability refers to the fact that existing data on the blockchain cannot be altered or tampered with, and that these data records are irreversible.

Bitcoin does this by using distributed ledger technology, along with timestamps on its own blockchain, to keep identical data in sync on multiple computers around the world.

By hashing transactions in a continuous chain of hash-based Proof of Work, network timestamps segment transactions, creating a history that cannot be modified without repeating the Proof of Work.

Even if “re-Proof of Work” requires continuous mining (maintaining the Proof of Work system), difficulties will remain due to more than 13 years of data on the blockchain running around the clock.

It would be very difficult to transfer this massive data load from the existing chain to a new chain that uses POS.

In contrast, the Ethereum merger was completed only last month after years of discussion between Ethereum developers and other stakeholders.

While Bitcoin started in 2009, Ethereum was launched in 2015.

Deploying a fundamental modification to an entire system that was supposed to be immutable would be much more difficult.

While switching from PoW to PoS is technically feasible, it would be extremely difficult and not possible, not to mention very unpleasant for the mining community.

Bitcoin mining equipment cost will drop dramatically

Miners must use ASIC miners, highly specialized equipment, to perform complex calculations and accommodate the extremely high hash rates required to mine cryptocurrency, in order to mint bitcoin.

There are few options for Bitcoin miners for mining Other digital assets.

It’s not just about moving from one PoW asset to another, since ASIC miners are designed to focus on one type of hashing algorithm, using SHA-256 in the context of Bitcoin.

Although blockchain has its advantages and disadvantages, Bitcoin Cash BCH / USD It is the only realistic alternative.

It is questionable whether the massive influx of Bitcoin miners can be profitable or feasible over other block chains that use SHA-256 coins, especially for many of the lesser known coins.

Obtain majority approval for this procedure

At least half of the network’s stakeholders must agree to support a radical change in its ecosystem for this plan to have any chance of success.

It would be very difficult to convince miners to support such a move, especially those who have spent hundreds of thousands or even millions of dollars on mining farms.

Manufacture and operate mining equipment using environmentally friendly energy sources

In addition to the massive energy needs of Bitcoin mining and transactions in general, as well as the associated e-waste, the Bitcoin network offers strong security due to its overall hash rate.

This in turn affects how well he can defend against an attack by 51%.

Read also: ESG Labels for Cryptography? Europe looks to offset energy consumption in driving the environment

Extensive use of renewable energy, or perhaps nuclear energy, is a vital strategy to help decarbonize bitcoin.

In addition, innovative ways must be developed to use more of the waste heat produced by machines.

As a result, especially in cold regions, miners are applying innovative techniques to harness this energy effectively.

To make Bitcoin a truly green digital currency, though, more needs to be done to make better use of these resources.

It is also essential to efficiently manage and reduce related e-waste.

In order to maintain stability, the Bitcoin hash rate must rise as the network is expected to expand.

If this does not result in significant energy savings being incorporated into future machinery, the overall energy density of mining equipment will increase.

Finding solutions to these environmental problems would also be more rational and realistic than completely changing the way Bitcoin consensus.

Not only will this likely lead to fewer network outages, but it will also be less costly and polarizing for society.

next one: EXCLUSIVE: Sam Bankman-Fried tells Benzinga his proposal is a clear win for DeFi – Crypto influencer FTX CEO says he’s a ‘demon’ trying to ‘permanently destroy crypto’

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