Hang around the crypto space for even a little while and you’ll hear something about the ongoing debate between the protocols that operate on proof of work, and those that operate on proof of stake.
This is one of the biggest conversations in crypto, and both sides have pretty loud evangelists.
If you need a refresher on the differences between the two, here’s a great link to help you.
Those who love proof of work argue that the complex mining requirements related to operating a network that way create decentralization, security and value that cannot be matched. Those advocating for proof of stake say operating a network with that method creates decentralization, participation, and sustainability that is superior to proof of work.
The debate entered a new era this week when Ethereum transitioned from proof of work to proof of stake. Now, Bitcoin stands alone among the major cryptocurrencies as the only protocol still operating on a proof of work model.
Some say this means it is now “Bitcoin against the world” when it comes to determining which method is superior. I’ve seen many on both sides of the argument welcome this new era, saying the debate will soon settle once and for all.
I welcome this too.
While I believe in a multi-chain future, with different chains having different strengths, I also think it’s a good idea for this era to begin. Let’s see which is superior, let’s allow the market to decide.
The market is never wrong. More on that concept this Thursday…
The Crypto Connection is for entertainment purposes only and is not meant to be financial advice. Please do your own research before investing in any asset class. Sara Celi is not a financial advisor, and holds several cryptocurrencies. To purchase her books on Amazon, please click here.