Chris Larsen, co-founder of Ripple and a major investor in XRP, believes that bitcoin must continue to think about the problem of environmental damage in order to continue its work.
to the the report Ripple co-founder Chris Larsen, who writes that Bitcoin continues to consume the same amount of energy, cannot last long. He also believes that the only way for Bitcoin to get rid of this problem is to abandon the proof of work algorithm and turn to stock proof. “Larsen said in a report published on the Medium website on Thursday:
I believe that change is necessary if Bitcoin wants to remain the number one digital currency and market leader.
The proof of work algorithm is the model used to extract bitcoins. This model is known for its high energy consumption. Powerful devices known as miners compete to extract bitcoins. In the end, any machine that solves complex bitcoin equations sooner wins the competition and receives a mining reward. The same competition for bitcoin mining has led to the production and marketing of more powerful devices every day; This means more electricity consumption.
According to Larsen:
Bitcoin is becoming more and more popular among private investors and companies. This is while the world is facing climate change. If things continue like this, the power consumption of bitcoin will reach a level that will be unbearable for the world.
According to the Digiconomist platform, the carbon produced by bitcoin mining is equal to the carbon produced in Bulgaria as a whole. Also, each bitcoin transaction can provide the energy needed by an American family for more than a month.
Some Bitcoin fans believe that the proof-of-work model is not so bad. For example, they argue that bitcoin mining can encourage the community to use renewable energy, or that bitcoin power consumption will decrease over time. But according to Larsen, none of these statements are true and reliable. Larsen believes that we need to see the proof-of-work model as it is today (not as it will be in the future), and the truth is that proof-of-work is a “technology with an extraordinary design, but outdated.”
Larsen said in the report that proof-of-work digital currencies must keep up with the changes of the day to survive. He considers the XRP digital currency, which uses a federal blockchain, to be a more stable currency. Larsen also believes that their blockchain (which allows only a limited number of people to validate transactions) does much less damage to the environment and is more energy efficient.
In addition, Larsen advocates a stock-proof consensus algorithm. This algorithm selects the credentials based on the amount of capital they have invested in the network. The more digital currency you share, the higher the reward you will receive. Popular digital currencies that use stock proofs include Theron, Thezos, and Ethereum 2.0.
“These currencies,” Larsen says.
These projects have stood the test of time and have proven to be decentralized.
It should be noted that the dominance of Bitcoin in the digital currency market is declining. Since the beginning of the year, Bitcoin’s share of this market has decreased by 18%, from 69% to 51%. With that said, we may need to change the way this popular digital currency works.