Charles Hoskinson: Cardano’s PoS Consensus Protocol is ‘1.6 Million Times More Efficient Than Bitcoin’
- Cardano’s frontman Charles Hoskinson has leaned his voice on the ongoing energy concerns surrounding Bitcoin mining.
- In Q1 of 2021 alone, Bitcoin shot up by 71% and has seen an influx of interest.
- China is the world’s foremost producer of Bitcoin, amassing more than 60% of total Bitcoin mined globally.
- There are growing concerns that the Asian nation’s mining practices are detrimental to the environment as most Bitcoins are mined using coal plants.
In a recent interview, the IOHK CEO spoke on the climatic impact of BTC mining and how Cardano is different in its approach.
Cardano Is 1.6 Million Times More Energy-Efficient Than Bitcoin
Mathematician and former co-founder of Ethereum blockchain Charles Hoskinson said in a Forbes interview that Bitcoin’s proof-of-work (PoW) consensus algorithm is energy-intensive due to its meritocratic mining process. ETH 1.43% Ethereum / USD ETHUSD $ 3,579.23
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According to Hoskinson, a divergence from this protocol to proof-of-stake (PoS) consensus protocol where a miner gets elected to create blocks is far more efficient.
He also contrasted Cardano’s energy consumption with Bitcoin’s. He claims that Cardano is 1.6 million times more efficient in its mining process. BTC -0.66% Bitcoin / USD BTCUSD $ 47,684.13
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Bitcoin’s mining has become a source of worry for environmentalists who feel the world’s oldest cryptocurrency is adding to the climate situation.
In a blog post on Medium, Ripple’s Chairman and founder Chris Larsen spoke on BTC’s energy-intensive validation process.
According to the angel investor, the PoW protocol is a massive drain on power consumption and a growing source of CO2 emissions.
He also argued that the only way Bitcoin will retain its dominance as the world’s foremost crypto asset is if it shifts to a more environmentally-friendly validation protocol.
Larsen pointed to consensus protocols like the proof-of-stake (PoS) used by new virtual currencies or the Federated Consensus used by the XRP Ledger as likely substitutes.
According to the executive, the PoW is outdated. Bitcoin needs to utilize low energy or low carbon alternatives to secure its ledgers. However, US payment processor Square argues differently.
According to the tech company, Bitcoin could play a pivotal role in transitioning to a cleaner and more resilient electricity supply. In a whitepaper titled “Bitcoin Is Key To An Abundant, Clean Energy Future,” Square said that the research looks to support companies looking to utilize green energy technologies within Bitcoin mining.
Cardano Is For Visionaries
Hoskinson’s led Cardano has been dubbed the Ethereum killer due to its focus on interoperability between blockchains and reductions in gas fees and network congestion. However, the blockchain company has not gone mainstream even though it has received much support from the crypto community.
According to Hoskinson, over 10,000 native tokens are currently active on the Cardano network since the launch of its “Mary” hard fork combinatory in March.
He also said that the smart contracts functionality of the “Alonzo” upgrade would focus on activating governance protocol and has already garnered 20,000 subscribers.
This would see the Cardano network rolling out a commercialization tool that would onboard nation-states and bring millions of users to the network, Hoskinson added.
The Cardano brand is growing rapidly. Yesterday, the University of Zurich announced the inclusion of the peer-reviewed blockchain in its curriculum list for the 2021 academic year.
The program called “Deep Dive into Blockchain 2021” is taking on Cardano as it is a blockchain platform for change-makers, innovators, and visionaries.