Ripple co-founder Chris Larsen is working to encourage Bitcoin miners to support a migration from PoW to Proof of Stake and therefore a less energy-intensive blockchain.
Chris Larsen, the president and co-founder of Ripple does not budge . According to him, the blockchain and its actors would gain from a migration towards a consensus of the Proof-of-Stake type . Clearly, to give up the current Proof-of-Work.
The 2nd largest cryptocurrency, Ethereum, has already been engaged for more than a year in such a migration. For the blockchain, abandoning the PoW however represents an upheaval for its miners.
The Miners Are Resisting
To make Bitcoin's consensus evolve so radically , the help of miners is essential. Chris Larsen therefore strives to evangelize them on the merits of Proof-of-Stake. The task promises to be complicated.
For the boss of Ripple, quoted by Cointelegraph , BTC miners could however benefit from it. How? 'Or' What ? Thanks to a rise in the share price of miners listed on the stock exchange. Larsen believes their listing would benefit.
Miners have the ability to evolve the Bitcoin code by including “lucrative incentives” in return for their support. These changes are likely to please shareholders and therefore drive their stock market prices.
They also have the opportunity to take care of their carbon footprint and green their image. To meet these challenges, however, miners favor another approach by increasingly opting for a supply of renewable energies.
Rethinking The Distribution Of Rewards
According to Chris Larsen, Bitcoin currently consumes as much as 12 million U.S. households each year. Thanks to PoS, this consumption could be reduced to just 100.
But how to migrate without jeopardizing the very lucrative income of miners and their heavy investments in mining equipment? Thanks to a distribution model of mined BTC at least as favorable.
Every day, thanks to the creation of the new blocks, 900 bitcoins are distributed on average. Another 2.1 million tokens remain to be created by 2140. According to Larsen, this distribution can be maintained, without calling into question the business model of minors.
They received as many tokens, but without having to devote as many resources to their operational functioning. On paper, the promise is attractive: equal profits and lower expenses.
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