Fun

Ethereum Co-Founder Vitalik Buterin Discusses Bitcoin’s Long-Term Security

News Feed - 2022-09-05 04:09:47

Ethereum Co-Founder Vitalik Buterin Discusses Bitcoin’s Long-Term Security


On September 1, Vitalik Buterin conducted an interview with the economics author Noah Smith and the co-founder of Ethereum spoke an awful lot about Bitcoin and the network’s long-term security. Buterin also discussed the crypto economy’s crash and said he was “surprised that the crash did not happen earlier.” Buterin: Bitcoin Is ‘Not Succeeding at Getting the Level of Fee Revenue Required to Secure What Could Be a Multi-Trillion-Dollar System’


Ethereum’s co-founder Vitalik Buterin recently did an interview with the economics author Noah Smith and Buterin had a lot to say about the current state of crypto. Smith first asked Buterin about his thoughts about the recent crypto crash and Buterin said he thought that it would have crashed sooner.


“I was surprised that the crash did not happen earlier,” Buterin said during the interview. “Normally crypto bubbles last around 6-9 months after surpassing the previous top, after which the rapid drop comes pretty quickly. This time, the bull market lasted nearly one and a half years,” the developer added.


Buterin also talked a great deal about the Bitcoin (BTC) network and The Merge, Ethereum’s highly anticipated transition from proof-of-work (PoW) to proof-of-stake (PoS). He claims Bitcoin is not cutting it when it comes to fee revenue from block subsidies.


“In the long term, Bitcoin security is going to come entirely from fees, and Bitcoin is just not succeeding at getting the level of fee revenue required to secure what could be a multi-trillion-dollar system,” Buterin said.


When Smith asked Buterin about Bitcoin’s energy usage, the Ethereum co-founder noted that PoS will not only reduce harm to the environment, it’s also about keeping the blockchain secure.


“A consensus system that needlessly costs huge amounts of electricity is not just bad for the environment, it also requires issuing hundreds of thousands of BTC or ETH every year,” Buterin stressed. “Eventually, of course, the issuance will decrease to near-zero, at which point that will stop being an issue, but then Bitcoin will start to deal with another issue: how to make sure that it stays secure.” Buterin added: And these security motivations are also a really important driver behind Ethereum’s move to proof-of-stake. Ethereum Co-Founder Insists Early Proof-of-Work Era Is ‘Unsustainable and It’s Not Coming Back’


Buterin understands that Bitcoin won’t change its consensus mechanism, at least for now, but if the chain was attacked, he believes the discussion of a hybrid PoS algorithm could come into play.


“Of course, if Bitcoin actually gets attacked, I do expect that the political will to switch to at least hybrid proof of stake will quickly appear, but I expect that to be a painful transition,” the software developer told Smith. The Ethereum co-founder said that he thinks people have the wrong idea about PoS giving the largest stakeholders control over the network.


“There are also people who try to claim that PoS allows big stakeholders to control the protocol, but I think those arguments are just plain wrong,” Buterin said. “They rest on a misconception that PoW and PoS are governance mechanisms, when in reality they are consensus mechanisms. All they do is help the network agree on the right chain.”


Buterin continued by noting that he thinks the early version of PoW was a good starting point but nowadays he believes it’s antiquated, on its way out the door, and likely won’t return. The highly democratized early proof-of-work era was a beautiful thing, and it helped tremendously in making cryptocurrency ownership more egalitarian, but it’s unsustainable and it’s not coming back. Tags in this story Bitcoin’s energy usage, Blockchain security, Buterin, consensus mechanisms, crypto bubbles, crypto crash, Fee revenue, governance mechanisms, interview, network, network shift, Noah Smith, PoS, PoW, Proof of Work, Proof-of-Stake, Security, stakeholders, The Merge, transition, unsustainable, Vitalik Buterin


What do you think about Vitalik Buterin’s comments about the crypto crash, the Bitcoin network, and PoW vs. PoS? Let us know what you think about this subject in the comments section below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today. South Korean Government’s Youtube Channel Hacked to Play Crypto Video With Elon Musk NEWS | 16 hours ago FIFA to Launch NFT Platform for Soccer Fans NEWS | 24 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleRome’s Financial Volatility to Shock the Eurozone — Hedge Funds Bet $39 Billion Against Italian Debt Next articleThis Week’s NFT Sales Jump 26% Higher Than the Week Prior, Bored Ape #6,588 Sells for $1.17M Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItFidelity Investments Launches Crypto, Metaverse ETFs — Says "We Continue to See Demand"


Fidelity Investments, one of the largest financial services firms with more than $11 trillion under administration, is launching exchange-traded funds (ETFs) focusing on the crypto ecosystem and the metaverse. "We continue to see demand, particularly from young investors, for access ... read more.Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher

News Feed

Tom Mitchelhill5 hours agoRug pull feared as Safereum devs reportedly unlock and dump native tokenAccording to blockchain security analysts, the developers of the Safereum project suddenly sold more than 700 ETH worth of
US gov’t $590M Silk Road Bitcoin transfer to Coinbase unlikely to be sold — Analyst
Zoltan Vardai12 hours agoUS gov’t $590M Silk Road Bitcoin transfer to Coinbase unlikely to be sold — AnalystThe government could also be looking to custody or trade the Bitcoin, based on a recent partnership with Coi
Former Ethereum Dev Virgil Griffith Pleads Guilty to North Korea Charge, Enters Plea Deal for 6.5 Years: Report
Former Ethereum Dev Virgil Griffith Pleads Guilty to North Korea Charge, Enters Plea Deal for 6.5 Years: Report On September 27, 2021, at the Southern District of New York courthou
Sensorium Galaxy Building the Mecca of Electronic Dance Music in Virtual Reality
Sensorium Galaxy Building the Mecca of Electronic Dance Music in Virtual RealitySensorium strikes a landmark partnership with the creative force behind Ibiza’s hottest nightli
MaskEX Global Held the Futurization of Urban Lifestyle Summit in Dubai, UAE
MaskEX Global Held the Futurization of Urban Lifestyle Summit in Dubai, UAE press release PRESS RELEASE.The Futurization of Urban Lifestyle Summit was held in Dubai at the Jumeirah
Report: 42.9% of Turks View Gold as Best Form of Investment, Only 1.9% Would Invest in Crypto
Report: 42.9% of Turks View Gold as Best Form of Investment, Only 1.9% Would Invest in Crypto A new study has found that nearly 43% of Turkish individuals surveyed consider gold to
Plotting the path to $80K — 5 things to know in Bitcoin this week
William Suberg13 hours agoPlotting the path to $80K — 5 things to know in Bitcoin this weekBTC price gains before the Wall Street open as CPI week appears to set the tone for the incoming Bitcoin halving.10038 Total vi
41 German Banks Now Charge Negative Interest Rates
41 German Banks Now Charge Negative Interest Rates The number of German banks charging negative interest rates has been rising rapidly. At least 41 banks now charge negative inte
IRS hires 2 private-sector crypto experts to prep for tax season
Arijit Sarkar59 minutes agoIRS hires 2 private-sector crypto experts to prep for tax seasonThe IRS will use the funding from the Inflation Reduction Act (IRA), a federal law aimed at curbing inflation, to build complianc
JPMorgan Predicts $146K Bitcoin Price as Competition With Gold Escalates
JPMorgan Predicts $146K Bitcoin Price as Competition With Gold Escalates JPMorgan’s analysts have made a case that bitcoin’s price could reach $146,0
Derek Andersen2 hours agoClass-action suit filed against Binance for alleged harm to FTX before its collapseA California resident is suing Binance and its CEO for tweets last November that, according to allegations, led
Bitfinex to refund investors of its failed El Salvador Hilton hotel project
Brayden Lindrea3 hours agoBitfinex to refund investors of its failed El Salvador Hilton hotel projectBitfinex intends to refund all investors but is firstly awaiting a potential new offer from the debt issuer to keep the