The creator of Cardano (ADA), Charles Hoskinson, has again criticized the Proof-of-Work, in favor of the Proof-of-Stake used by his blockchain. He claims that Cardano’s energy efficiency is vastly superior to that of Bitcoin.
Cardano, more energy efficient than Bitcoin
Charles Hoskinson is currently in the campaign. The creator of Cardano has been vocal in recent weeks, especially when it comes to promoting his blockchain. It is therefore in this context that this interview with Forbes takes place , where he underlines the effectiveness of Cardano in terms of energy.
Charles Hoskinson recalls that the Proof-of-Work used by Bitcoin is a “meritocratic” process, which puts miners in competition to obtain the right to produce a block. However, this system is particularly expensive , since “99.9999997% or more of the energy consumed by Bitcoin occurs during this first step” .
The creator of Cardano then explains that the Proof-of-Stake does not require such “ gargantuan ” energy expenditure , which gives it great energy efficiency:“We end up with protocols that are much lighter and much more energy efficient. Cardano for example is 1.6 million times more energy efficient at the moment than Bitcoin,”
A necessary transition to Proof-of-Stake?
Within the crypto community, however, the question is divisive. On the one hand, large projects – including Ethereum – have chosen Proof-of-Stake to improve their scalability . It is true that the energy expenditure of the Bitcoin network is high. According to an Index developed by the University of Cambridge, BTC represents 0.58% of global electricity consumption, more than countries like Argentina or Norway.
However, this fear, repeated many times by the general press, is questioned by the defenders of Bitcoin. A study by Square and Ark Invest indeed showed a few days ago that miners are turning overwhelmingly to the cheapest form of electricity that is produced in a renewable manner.
“Bitcoin mining could encourage investment in solar systems (solar panels and batteries), which would allow renewables to generate a larger percentage of the power grid, without influencing the cost of electricity.” the study concludes.
What is certain is the high electricity consumption of Proof-of-Stake protocols is a major debate within the crypto space. However it isnot yet certain if the concerns are enough to see the advent of Proof-of-Stake? Among the top 10 most capitalized cryptocurrencies at the moment, there are 3 cryptocurrencies based on proof of stake, and one in transition currently. The future will therefore tell whether it is the protocol that will become the majority.
