Ethereum 2.0 Vision: Proof of Stake More Efficient than PoW, Vitalik Buterin Emphasizes
Ethereum is obviously recovering in the market as the cryptocurrency trends are switching from bear to bullish in the last 48 hours, concluded with December 19th where Ethereum managed to get past the value of 100$.
The now third-largest currency is now traded at the price of 104$, and in the meanwhile, as ETH was still struggling with getting past the value of 90$, the team announced the new roadmap for Ethereum, dubbed Ethereum 2.0.
Ethereum 2.0 is said to be the next biggest development for the network, as the new version of Ethereum should bring new updates that will solve the most talked-about issue in the blockchain space – problems with scaling large decentralized networks.
Recently, in an interview for Blockchain Insider, Vitalik Buterin, the founder and the first man of Ethereum (ETH), talked about why the team decided to update from Proof of Work protocol to a more efficient Proof of Stake.
Buterin Says Proof of Stake is Better than Proof of Work
Buterin started his argument on the matter why PoS beats PoW with providing a brief introduction into what the two protocols represent.
As stated by Buterin, both protocols are somewhat very similar although having crucial differences, in terms of having both, PoS and PoW using economical resources. The amount of these economical resources determines the level of participation in the network, thus making a crucial element in a decentralized ecosystem.
Buterin reminds that if these protocols were absent, the level of participation could be easily faked, so one participant could pretend to have the power of “billion participants”.
Describing the role of Proof of Work mechanism, Buterin states that the mechanism represents a medium for establishing communication between computers that create networks like Ethereum and Bitcoin, also establishing processing order for each message that goes through the system.
However, despite the functionality of PoW mechanism, Buterin states that Proof of Stake makes a better choice given the fact that Proof of Work, in order to function properly, need these computers to work without stopping while solving mathematical equations, which ultimately requires increased energy consumption.
The lack of energy efficiency and cost-effectiveness with Proof of Work mechanism is precisely why Ethereum will switch to Proof of Stake.
In his argument, Buterin added several more reasons to prove PoS supremacy over PoW, mentioning that Proof of Stake only requires digital signatures in order to determine the ownership of coins, thus determining the level of participation with more efficiency and less energy consumption.
8 Teams are Working on Ethereum 2.0
Ethereum 2.0 is set to come with major improvements, fixes, and updates for Ethereum network. Some of these updates include Beacon Chain and Casper FFG as Proof of Stake solutions, increased scalability through Sharding, mining improvements, Plasma, Raiden, eWASM, and more to come.
It is said that there are 8 different teams currently working on these updates, which should ultimately result in releasing Ethereum 2.0.
The teams working on Ethereum 2.0 are Toronto-based Chain Safe Systems, Harmony, Pegasys, Parity Technologies, Prysmatic Labs, Sigma Prime, Status, and Trinity.
1953total visits,2visits today