Litecoin Foundation Director: Proof of Stake Has No Visible Advantage Over Proof of Work
The director of the Litecoin Foundation and CEO of Coinnut, Xinxi Wang, has recently affirmed during an interview that proof of stake protocols have no real advantages over the classic proof of work protocols.
In case you do not know, the difference between these two protocols is that the proof of work, which is the one used by Bitcoin and most tokens, works by mining tokens, that is, the miners solve complex equations in order to determine the transactions, while proof of stake is when the users stake their tokens to be validators.
A lot of people consider proof of work to be too energy intensive and they criticize it for it. Wang has affirmed that this may be the truth, but that the energy is used in something that is worthy: security.
According to him, staking enable the people who already got more cryptos to earn more rewards. This, he believes, can cause more concentration in the cryptocurrency market because the already rich will get richer quickly. If a single group then controls over 51% of the network, they can simply take it because they would fully control it.
Xinxi Wang Also Spoke About Litecoin
He also affirmed during the interview that he chooses to work with Litecoin instead of Bitcoin because of the quick confirmation times. This makes the transactions faster and more efficient and it was the ultimate reason for why he deems that Litecoin has superior technology.
However, he does acknowledge the fact that Bitcoin is excellent for large transactions because it is very secure, despite being slow. This, he believes, makes it more ideal for storing money while Litecoin is certainly a better option for spending it and transacting smaller amounts of money.
According to him, this makes both Litecoin and Bitcoin interesting for their own niche markets. While one is better in one aspect, the other is better in another as far as cryptocurrency use cases.
Talking more about Bitcoin, he affirmed that the implementation of the MimbleWimble protocol will address the fungibility issues of the token. According to him, it would make Litecoin better than Monero actually is at the moment with the ability to make Confidential Transactions (CT). He also affirmed that MimbleWimble is more scalable than Monero.
He affirmed that the MimbleWimble technology is very good and that it can be used to get more privacy in a scalable way.