During a recent interview, Ethereum co-founder Vitalik Buterin shared his opinion on the algorithm on which bitcoin works.
Oddly enough, Buterin said that in front of everyonethe benefits of Proof-of-Stake (PoS), especially in terms of environmental impact, he believes that Satoshi Nakamoto's decision to switch to Proof-of-Work (PoW) at that time was the right one.
Meanwhile, one of the important current events inThe crypto ecosystem was the transition of Ethereum to a way to achieve PoS consensus. Along with many innovations, ETH 2.0 will provide greater scalability, resilience, and security.
Transition to ETH 2.0 has three main steps. The first is the Beacon Chain, which introduces staking functionality and lays the foundation for the rest of the development. This testnet was launched a year ago in December 2020.
Then there is Merge, which is important for the merge.Beacon Chain with existing ETH 1.0 network. The implementation of this phase is scheduled for Q1 / Q2 2022. However, talk of moving the difficulty bomb to May 2022 suggests that this stage could go off schedule.
Difficulty Bomb is a process that gradually complicates PoW mining until Ethereum mining is no longer profitable. In fact, this is the phase of abandoning mining and miners.
Finally, Shard Chains distributes network load across 64 new networks for increased scalability and capacity. According to preliminary estimates, everything will be ready within 2022.
The chosen path is much more difficult than building a new one.blockchain from scratch. The launch of two parallel networks and their subsequent merging is accompanied by technical problems that would not have occurred if launched on PoS.
Instead of regretting the choice of PoW as a concept, Vitalik Buterin is confident that at the time of the formation of cryptocurrencies, this was the best solution.
If he had created bitcoin himself, he would probably have turned to Proof-of-Work for the first five years and then switched to Proof-of-Stake.
At the same time, Buterin added that PoW isa democratic way to distribute tokens. He also noted that although ASIC mining made this process the prerogative of companies with large resources, at first, bitcoins could be mined using a GPU.
The fact that Bitcoin started Proof-of-Work is very important and good.