Ripple’s co-founder, Chris Larsen, has urged the Bitcoin community to shift from the proof-of-work model to a proof-of-stake model. This change will ensure Bitcoin maintains its dominance in the crypto market.
Chris Larsen, one of the executives of Ripple, has urged the Bitcoin community, including miners, exchanges, and developers, to change from a proof-of-work structure to a proof-of-stake structure. According to Larsen, the change will help Bitcoin maintain its dominance in the crypto community.
Crypto and its impact on climate change
In a blog post, Larsen addressed the threat to climate change caused by upcoming technologies such as cryptocurrencies. Mining cryptocurrencies such as Bitcoin has caused concern among environmentalists due to the high level of energy involved. This impact can be solved by reducing energy consumption.
The growth of cryptocurrencies is excellent for the crypto community and the economy because the public has access to alternative and more secure ways of settling transactions. However, the increasing use and adoption of cryptocurrencies such as Bitcoin are affecting the carbon footprint.
Larsen noted that Bitcoin uses a proof-of-work mechanism to verify transactions. This mechanism needs a high amount of energy, and it emits high levels of CO2, which can be harmful to the climate. He also added that he was impressed at how the crypto community was committed to shifting to renewable energy.
Shifting to more sustainable mechanisms
Chris Larsen maintains that if Bitcoin were to shift to a PoS mechanism, it would maintain its dominance in the market. Currently, the PoS mechanism is being used by at least 43% of developers in the crypto market. He also applauded Ethereum for how it shifted to a PoS mechanism. He also encouraged the crypto community to consider the Federated Consensus from XRP Ledger.
Even with the concerns raised by Chris Larsen, the crypto community has come forward to argue that Bitcoin mining is a sustainable venture that did not result in the exaggerated carbon emissions depicted by environmentalists.
A white paper written by Jack Dorsey and Ark Invest states that Bitcoin has been taking steps towards using renewable energy sources. According to the white paper, Bitcoin was shifting to other energy sources such as solar and wind to reduce the impact of Bitcoin mining on the carbon footprint.
Ripple’s co-founder also urged the crypto community to be motivated to do what is good for the environment even as they celebrate the industry’s growth for the better part of the year. Addressing climate change is one of the issues that this community should address with vigilance.