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.
Ethereum a decentralized open-source blockchain with smart contracts functionality. co-founder Vitalik Buterin, in an interview with Noah Smith, said he has two big concerns about Bitcoin.
- Vitalik Buterin says he’s “worried” about Bitcoin’s future
- Ethereum’s co-founder claims two reasons
- Their criticisms are related to their PoW tariffs and mining.
In an interview today with economics writer Noah Smith, the co-creator of Ethereum, Vitalik Buterin, said he is “worried about 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. for two reasons”.
Smith shared the interview via Twitter to its more than 265 thousand followers:
In this interview, I talk to Vitalik Buterin about proof of work vs. proof of stake, the recent cryptomarket crash, cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. security, decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. governance, “startup partnerships,” and more.
In this interview, I talk with @VitalikButerin about proof-of-work vs. proof-of-stake, the recent crash in crypto markets, cryptocurrency security, decentralized governance, “startup societies”, and more! https://t.co/bXRzI0DASf
— Noah Smith ???????????? (@Noahpinion) September 2, 2022
Bitcoin’s problems, according to Vitalik
Buterin explained that he believes Bitcoin could face problems in the long-term future due to its fee model.
Currently, Bitcoin distributes coins to miners as payment for securing the network, but as the protocol has a maximum supply limit of 21 million, it eventually the network will depend only on transaction fees for security. Buterin told Smith that this is a problem because Bitcoin “ is not succeeding in obtaining the level of fee revenue required to secure what could be a multi-billion dollar system. “.
Their concern is backed up by some figures. According to data fromCrypto Fees, Bitcoinaveraged around USD $225,000 in rates over the past week, behind the pillars of DeFi a movement encouraging alternatives to traditional, centralized forms of financial services. like Aave y Uniswap . The biggest fee generator is the protocol Buterin created, which raised about $2.7 million during the same time period.
Buterin said he also fears for Bitcoin because “proof of work (PoW) provides much less security the term securities refers to a fungible and tradable financial instrument that carries a type of monetary value. per dollar spent in transaction fees than proof of participation (PoS)” arguing that it would be problematic to have a $5 trillion network that costs only $5 billion to attack.
Buterin also pointed out that the move away from Bitcoin of the Proof of Work would be “politically unfeasible”.
Sobre The Merge
In relation to to the next release of The Merge,the highly anticipated update that will see the blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. passing of proof of work ( PoW ) to proof of participation (PoS), some of the detractors have argued that the participation test limits decentralization the handover of control from a central authority to several different custodians. and allows larger stakeholders to control the network. Buterin, however, told Smith that he thought those arguments were “simply incorrect” . He said that critics have “a misconception that the Proof of Work and Proof of Participation are governance in the world of cryptocurrencies, governance is defined as the people or organizations that have decision-making powers regarding the project. mechanisms, when in fact they are consensus consensus is achieved when all participants of the network agree on the order and content of the blocks in the blockchain. mechanisms. All they do is help the network a network refers to all nodes in the operation of a blockchain at any given moment in time. agree on the correct chain. A block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. that violates the protocol the set of rules that define interactions on a network, usually involving consensus, transaction validation, and network participation on a blockchain. rules (e.g., if it tries to print more coins than the protocol rules allow) will not be accepted by the network, no matter how many miners contributors to a blockchain taking part in the process of mining. They can be professional miners or organizations with large-scale operations, or hobbyists who set up mining rigs at home or in the office. or participants support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. it.”
He also explained that in PoW miners are quite powerless in the governance process. “In PoS, it’s exactly the same; participants don’t choose the rules, they simply execute them and help order the transactions.”
In other words, participants can validate transactions, but they cannot influence the future design of the network.
He further said:
The early era of highly democratized proof-of-work poW is a type of consensus algorithm that rewards validators according to the amount of computational power they have expended. was a beautiful thing, and helped enormously in making cryptocurrency ownership more egalitarian, but it’s unsustainable and it’s not coming back.
About the current market an area or arena, online or offline, in which commercial dealings are conducted.
Buterin also shared some rare insights into the cryptomarket over the past two years, commenting on last year’s bull a person that is optimistic and confident that market prices will increase, this person is also known to be "bullish" about the market or price. run that pushed the global cryptocurrency market capitalization past $3 trillion in November 2021. He admitted that he was “s Surprised that the fall didn’t happen sooner…because manic phases tend to last for a period of a few months before a rapid fall.” . While he acknowledged that prices are down across the board in 2022, he said that crypto is feeling“useful”now. This is the full commentary:
“We are beginning to understand what both politics and technology will look like in the 21st century, and how each of the pieces we are working on will fit into the picture. In 2022, cryptocurrencies finally feel meaningfully useful Many major organizations and even governments are using them as a way to send and receive payments, and I suspect other applications will be coming soon. The future still feels less uncertain, but we have a much clearer picture than before of how it’s all going to play out.
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Illustration by Nicole León/ DiarioBitcoin