Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
In this regard, Hoskinson stressed that the White House could put in place very stringent measures to regulate mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. PoW, but the real problem is that if they are not complied with, it could basically exert pressure against these activities, even to the point of banning them definitively.
- Hoskinson warns of the danger in the application of the White House
- Want to regulate cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. operations PoW
- Indirectly they could ban mining of coins like Bitcoin
- PoS may be the option a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price. for projects, but the risks must be considered.
This week, the U.S. White House Office of Science and Technology Policy . published a controversial report warning about the need for environmental standards to regulate cryptocurrency activities, which proposes a scenario that could be detrimental to cryptocurrencies operating under a consensus model. Proof-of-Work poW is a type of consensus algorithm that rewards validators according to the amount of computational power they have expended. (PoW) like Bitcoin.
In view of the possible readings of this application by the White House, the CEO of IOG and principal developer of Cardano, Charles Hoskinson, shared his perspective on the matter, warning that this could be a bad omen for Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. and other cryptocurrencies.
Bad omen for cryptocurrency mining
Hoskinson’s comments came to place in one of his usual transmissions through his official channels, where he devoted an entire space to share his views on the issue, noting that this request for the White House has more prohibitive overtones than opportunities for the associated crypto projects.
Among the remarks made by the CEO of IOG, He warns that the request for standards is unclear, and that even if very strict measures were met to ensure optimal mining performance, the danger lies in the actions the government could take if the standards set are not met.
“And in what way? Well, these should include, ‘Standards for very low energy intensities, low water use, low noise generation, clean energy use by operators, and standards that strengthen over time for additional carbon-free generation to match and exceed the additional electricity load of their facilities…. Should these measures prove ineffective in reducing impacts, the administration should explore executive actions and Congress could consider legislation to limit or eliminate the use of energy-intensive consensus consensus is achieved when all participants of the network agree on the order and content of the blocks in the blockchain. mechanisms for cryptoasset a cryptoasset is any digital asset that uses cryptographic technologies to maintain its operation as a currency or decentralized application. mining…. In other words, Bitcoin should be banned. That’s how that reads.
Possible prohibitory measures
The arrival of the report of the White House comes in place of the executive order signed by President Joe Biden earlier this year, which called for a close refers to the closing price; similar to the same term used in stock trading. monitoring of the digital digital technologies are these electronic tools that have the ability to generate, store or even process data. asset ecosystem to think about regulatory measures in line with the needs of the people and the possibilities of the space.
In the context of the above, Hoskinson recommended looking at this with caution as the U.S. government could employ a variety of strategies to achieve its goals, and one of them may be restrictive measures for mining. PoW.
On this, Hoskinson notes:
“The White House is now basically hiding on page seven a report that no one will ever see or ever read: ‘Hey…good thing you got there with proof of work, but, you know, global warming is bad. So we should ban it. And we’ll gently ban it by having the EPA and DoE come in and basically create standards that you can’t adhere to.”
And then, when you can’t, create some sort of executive order or legislation to basically prevent you from being able to do that? Or destroy its profit margins so that it is no longer profitable for the U.S. mining industry.”
PoS: An ambivalent alternative
While the outlook for the mining industry looks bleak PoW In the U.S., because of the above, for some the natural alternative would be to think about Proof-of-Stake poS is a type of consensus algorithm that rewards validators according to the amount of crypto they have staked. (PoS) or derivatives, a modality that among its benefits adds up to be the most environmentally friendly proposal at present.
At present, both Cardano like many other networks Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. operate under this model, allowing validators to pledge funds as collateral collateral is any asset that a lender accepts as a form of security to ensure that the borrower repays a loan. and thus derive profits associated with block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. processing. These days the ecosystem of Ethereum a decentralized open-source blockchain with smart contracts functionality. will also migrate to this modality of operations, thus changing the mining traditionally employed by a system PoS after the update called“The Merge”.
However, for many analysts and critics PoS is not exactly the perfect option, since opting for environmental improvements ends up sacrificing decentralization. In the case of Ethereum, surveys reveal that several of the major exchanges are among the validators with the most nodes within the network, so if a government or other entity puts its weight on these companies, there may be risks for the network a network refers to all nodes in the operation of a blockchain at any given moment in time. to succumb to external pressures.
With regard to the measures proposed by the White House, For the time being, we can only monitor and evaluate the direction these measures will take in the near future.
- White House suggests restrictions for proof-of-work cryptocurrency in the U.S.
- Countdown to Vasil! Already 15 exchanges confirmed support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. for new Cardano update
- Vasil, Cardano’s update, will take place on September 22nd.
Reporte de Angel Di Matteo / DiarioBitcoin
Imagen de Nicole.Design for DiarioBitcoin