The chief executive of Ripple, Chris Larsen’s new plan to convince Bitcoin miners to adopt the popular Proof-of-Stake algorithm is a pay out for their continued use. The idea has been met with some skepticism from community members but could also see success if it does not lead to an unbalance in the market.
EOS’s founder, Daniel Larimer has revealed that he will be giving away a significant portion of his personal net worth to convince Bitcoin miners to switch from PoW (Proof-of-Work) consensus mechanism and adopt Proof of Stake.
The “xrp upcoming projects” is a plan to convince BTC miners to adopt Proof of Stake. The plan includes the xRapid and xCurrent products.
Chris Larsen, the Executive Chairman and Co-Founder of Ripple, has outlined his idea for Bitcoin miners to abandon Proof of Work (PoW), calling it “a net positive for their lifetime.”
He claims it may improve the stock prices of publicly traded mining companies because “any new code proposal would almost surely have to contain substantial incentives to earn their approval.”
The consensus technique that protects Bitcoin (BTC) transactions on the blockchain is known as Proof of Work (PoW). While the Bitcoin network is the most secure and dependable, the amount of energy required for BTC mining is a point of contention in the crypto community. Larsen posted on his blog on Nov. 10:
“According to climate scientists, Bitcoin’s code should be updated to a low-energy consensus method similar to those employed by practically all other significant crypto protocols.” For example, whereas Bitcoin consumes the equivalent of 12 million US homes per year, alternate approaches might reduce this to less than 100.”
Ethereum has already completed half of the transition to Proof of Stake. While Larsen claims that this would make Bitcoin a “outlier,” he admits that most Bitcoin mining businesses would resist any comparable shift.
He has, however, provided a mechanism for distributing the “900 Bitcoin per day” from block rewards and the “roughly 2.1 million more Bitcoin until the year 2140.”
“Take a snapshot of the current hash rate of existing miners and then compensate miners on a pro-rata hash power basis,” he offers as the “least disruptive” solution to BTC’s energy dilemma.
“Existing miners would simply have rights to future Bitcoin payouts without having to spend any extra energy or money on mining equipment.”
According to the millionaire industrialist, his idea would provide miners with “added economic advantage” and “lucrative profits” since they would earn the same amount of money while paying less in electricity bills.
“Future incentives […] may be retained and tokenized,” he proposed, adding that “although the process of enacting these ideas with agreement throughout the Bitcoin community will take time, the advantages far exceed the dangers.”
“These assets might be incredibly profitable for existing miners, particularly if Bitcoin transitions from its present reputation as a climate catastrophe to a genuinely green financial system of the future.”
Stronghold Digital Mining (SDIG), Hive Blockchain Technologies (HIVE), Canaan (CAN), Riot Blockchain (RIOT), BIT Mining (BTCM), Bit Digital (BTBT), Bitfarms (BITF), and Marathon Digital Mining (MDMG) are among the U.S. mining companies mentioned by Larsen (MARA).
Proof-of-stake vs. proof-of-work: What’s the Difference?
Needless to say, Bitcoiners — or miners who have ambitious aspirations to expand their part of the hashrate and would lose out on more money if this plan were implemented — are unlikely to be enthusiastic about the recommendations.
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The “xrp articles” is a cryptocurrency that has been created with the goal of converting Bitcoin miners to adopt Proof of Stake. This article will cover how XRP works and its plan for BTC miners.
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