Vitalik Buterin Says He’s A Fan Of Bitcoin Innovative Tech But Not Of Its Energy Consumption

vitalik-buterin-ethereum


Ethereum’s Vitalik Buterin has always been a strong influencer in the cryptocurrency community. Even if he is the co-founder of Ethereum, he often gives his opinion of other networks and blockchains. Recently, during a podcast with Blockchain Insider, Buterin talked about the future and functionality of Bitcoin and Ethereum. He said that bitcoin’s innovative technology is impressive but he also talked about some of the weaknesses of the technology as well as the advantages that PoS has over PoW.
Vitalik Buterin On Ethereum’s Technology
One of the pitfalls of the Bitcoin blockchain, according to Buterin, is the high level of energy consumption required for clearing transactions. In his words:

“The PoS and PoW mechanisms are similar to each other because both of them depend on economic resources for participation on the network. This kind of economic gatekeeping is necessary because without it, participants can manipulate the system. Imagine a situation where one participant pretends to be one billion fake participants to take over the network. Gatekeeping is possible with the proof-of-work consensus algorithm as well as proof-of-stake. In my opinion, the proof-of-stake is better.”


Proof-of-Work Vs Proof-of-Stake


With the proof-of-work consensus algorithm, users need to turn on their computers and use them to solve some complex mathematical problems to prove that they have computing power on a 24/7 basis. This is what leads to massive energy consumption. The Bitcoin network requires the kind of energy that can be used to run a small country to function. Ethereum doesn’t require that much energy to run. However, Buterin said he would prefer if the Ethereum blockchain required less energy than it currently uses.


Ethereum (ETH) Price Today – BTC / USD
#NamePrice24H %
2
ethereum
Ethereum(ETH)
$148.68
1.04%


Another reason why the proof-of-stake is more efficient is that you do not need to prove that you have computing power by running your systems 24/7. All you have to do is sign a digital signature that has the same cryptographic key as the coins. This way, the network runs with lower energy requirements than the PoW network. All you need to do is wait for the nodes to be verified according to Buterin.


After the podcast, some members of the cryptocurrency Twitter community asked Buterin what he thinks about the Bitcoin (BSV) network. In reply, he said that even if he doesn’t agree with the roadmap of the BSV network, the PoW algorithm is still a genuinely cool tech. In his words:“I have some reservations about the Bitcoin roadmap but I believe they are trying to do something genuinely cool with the tech. The BSV network is a pure dumpster fire.”


Ethereum (ETH) Price Analysis


Ethereum (ETH) was able to recover a few points above $130 yesterday. There was a significant bearish resistance at $130 that made the price struggle to move above this level and even cause a decline short-term. It may be able to move above the $160 level if it is able to break the resistance at $135. The relative strength index is moving below 50 and the MACD is entering the bullish territory. There is a significant resistance at $135 and a significant support at $121.


Right now, ETH is trading at $118.15. This shows that it is down by 5.91% against the USD and down by 2.47% against BTC. The trading volume over a 24 hour period is $2,487,348,058 and the market capitalization is $12,293,849,378.

Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.

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