Ripple's co-founder wants Bitcoin miners to move to energy-efficient algorithm

2 min read | December 14, 2021 09:32 AM AEDT | By Ashish

Google News:

Ripple's co-founder wants Bitcoin miners to move to energy-efficient algorithm — Image source: Virrage Images,Shutterstock

Recent News

The Contrarian's Map: Which ASX Sectors Look Cheap Right Now

Buying a Dollar for Seventy Cents: What Does Value Investing Actually...

Growth at What Price? A Sensible Framework for Buying ASX Tech After t...

Best ASX Tech Stocks: Durable Moats After the Shakeout

Make Kalkine Media
My Trusted Source

Highlights

Bitcoin mining requires a significant amount of energy.

As a result, critics question the future of digital assets and single out carbon emissions from the mining.

Ripple co-founder Chris Larsen recommended Bitcoin miners to accept energy-efficient proof-of-stake (PoS) algorithm.

Obtaining Bitcoin is an energy-intensive endeavour as its mining requires a significant amount of energy. As a result, critics question the future of digital assets and single out carbon emissions from the mining. However, Ripple co-founder Chris Larsen has suggested a solution to the problem.

In his recent blog, Larsen recommended Bitcoin miners to accept energy-efficient proof-of-stake (PoS) algorithm and switch from currently followed energy-intensive proof-of-work (PoW) protocol.

Proof-of-work is a consensus algorithm that adds new blocks of transactions to a cryptocurrency's blockchain.

“The least disruptive proposal would simply take a snapshot of the current hash rate of existing miners and then reward miners on a pro-rata hash power basis until 2140,” Larsen wrote in his Medium post.

“Existing miners would simply have the right to future Bitcoin rewards without having to make additional investments in mining platforms,” he added.

Obtaining Bitcoin is an energy-intensive endeavour as its mining requires a significant amount of energy.

Source: © Aoutphoto | Megapixl.com

"Under such a proposal, miners would gain additional economic benefit — gaining the same revenue with substantially less operating costs," he noted.

Meanwhile, the majority of tokens, including Bitcoin and Ethereum, continued to fall as many as six out of the top 10 digital tokens were trading lower at the time of writing. Terra and Polkadot were holding mild gains, whereas Cardano shed 6%.

The global crypto market cap fell nearly a per cent to the US$2.25-trillion mark as compared to previous day. However, the total crypto market volume slipped as much as 8% to US$70.34 billion.

The largest cryptocurrency by market capitalisation, Bitcoin, faced a bit of a sell-off and hovered around the US$48,000 mark.

RELATED ARTICLE: US stocks retreat ahead of Fed meeting

RELATED ARTICLE: How to invest in crypto in Australia?

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.