© by BenzingaBitcoin (CRYPTO: BTC), the leading cryptocurrency that still dominates the market, has faced many challenges along the way, the biggest of which has to do with Proof of Work (PoW) mining consensus and its subsequent environmental impact.
One of the most talked about issues in recent years is the high energy consumption of the Bitcoin network, with Tesla Inc (NASDAQ:TSLA) CEO Elon Musk reinforcing the idea that Bitcoin in its current form is bad for the environment.
However, miners have been exploring the use of renewable energy for some time, and recent reports show that 58% of the energy used by the Bitcoin network comes from renewable sources.
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In 2022, the debate shifted from the use of sustainable energy to a revision of the mining consensus, with a powerful lobby and Proof of Stake (PoS) proponents calling for changes to the Bitcoin token.
Ethereum's (CRYPTO: ETH) switch from Proof of Work to Proof of Stake last month also fueled demand for the change.
Although PoW was the original cryptocurrency mining consensus, it was adopted by a number of innovative crypto projects and popularized by Bitcoin, while PoS was introduced in 2013 with the launch of Peercoin, and although it does not benefit from its scalability and low energy consumption. is a popular choice for new cryptocurrency companies.
The buzz around Ethereum's transition to PoS has revived the conversation about PoS compatibility from the Bitcoin hard fork.
In this article, we will list several reasons why Bitcoin is unlikely to become a PoS.
Bitcoin stability
Immutability means that the data in a blockchain cannot be altered or changed, and the records of that data are irreversible.
Bitcoin does this by using distributed ledger technology with timestamps on the blockchain to store the same information on many computers around the world simultaneously.
With hashing operations in a hash-based continuous Proof-of-Work chain, the network records the timestamps of transactions, creating an immutable history of Proof-of-Work without repetition.
Even if Proof of Work recovery requires continuous mining (supporting the Proof of Work system), there will still be problems with more than 13 years of data stored on the blockchain 24/7.
It would be very difficult to transfer this large amount of data from the existing network to the new network using POS.
In contrast, the Ethereum merger was completed only last month after years of discussions between Ethereum developers and other stakeholders.
While Bitcoin started in 2009, Ethereum was launched in 2015.
It would be much more difficult to make fundamental changes to an entire system that should not change.
While the transition from PoW to PoS is technically possible, it would be extremely difficult and impossible, not to mention very frustrating for the mining community.
Bitcoin mining equipment costs will drop dramatically
To mine Bitcoin, miners must use Application Specific Integrated Circuit (ASIC) miners, highly specialized hardware to perform complex calculations and provide the extremely high hash rates required for cryptocurrency mining.
Bitcoin miners have several options for mining other digital assets.
It's not just about moving from one PoW asset to another, as ASIC miners focus on a type of hashing algorithm that uses SHA-256 in the context of Bitcoin.
While Blockchain has its pros and cons, Bitcoin Cash (CRYPTO: BCH) is the only real alternative.
It is questionable whether a mass influx of Bitcoin miners would be profitable or possible on other blockchains using SHA-256 coins, especially many of the lesser-known coins.
Obtain majority approval for this procedure
At least half of the network's stakeholders must agree to support radical changes in its ecosystem for this plan to have any chance of success.
It will be very difficult to convince miners, especially those who have spent hundreds of thousands or even millions of dollars on mining farms, to support such a move.
Production and operation of mining equipment using environmentally friendly energy sources
Aside from the high energy requirements of Bitcoin mining and operations in general, as well as the associated electronic waste, the Bitcoin network offers strong security due to its overall hash rate.
This in turn affects how well he can defend against 51% attacks.
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Expanded use of renewable energy, or perhaps nuclear power, is an important strategy to help decarbonize Bitcoin.
In addition, innovative ways to maximize the use of waste heat generated by vehicles should be developed.
As a result, especially in colder regions, miners are finding creative ways to use this energy efficiently.
More needs to be done to make better use of these resources to make Bitcoin a truly green digital currency.
Effective management and reduction of e-waste is also important.
Bitcoin's hash rate must increase as the network expands to maintain stability.
Unless this results in significant energy savings for future machines, the overall power density of mining equipment will continue to increase.
Finding solutions to these environmental problems would be more rational and realistic than a complete overhaul of the Bitcoin consensus.
Not only will this reduce grid outages, but it will also be less costly and less polarizing for society.
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