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Bitcoin PoW is Fowl says crypto techie: PoA is how it should work

Launching the challenge and facing the big bitcoin community was Gerald Fenech when he claimed in his own Forbes article that the Principle deployed in bitcoin PoW does not hold up technically and was in its true sense a "defect".

The world of cryptocurrency is actually a complex network of technical processes that evolve to provide solutions that are imbued with concepts such as immutability, transparency and decentralized distribution of master books. So, from time to time, there are profoundly technical aspects that are discussed among community members to offer alternative solutions that could be technically more feasible or bring the platform to a different level.

One of these technical debates is PoW (Proof of Work) vs. PoA (Proof of Authority).

Historical background of bitcoin

The time has come for investors and the bitcoin community to identify that at the time of the launch of this superpower cryptographic currency in 2009 by Satoshi Nakamoto the intent was to offer as a reward the first "transaction" evaluator on the block. So the concept followed was Proof of Work. There is a school of thought among the bitcoin purists that this was a concept that was originally developed in 1977 by Adam Back and simply known as Hashcash.

The current argument is that the use of PoW is just a documentation of "challenges" that will eventually be fatal. The particular perception of the fatal in this case is that the process of block validation on the PoW principle consumes large amounts of computing power, energy and is also detrimental to the environment, due to the extraction process. It is very similar to the carbon footprints created by the data storage industry where servers that consume huge amounts of energy are cooled using water and other alternatives.

Fenech argues that the problem before the PoW currency extraction is that there are high investments required in terms of hardware, as well as operational processes that require large areas or real estate apart from the disaster-proof infrastructure itself. risk management in large mining centers. The formation of these resources put in common in the mines reveals that there is a centralization of resources.

PoA is the alternative

Fenech argues, in this reasoned presentation, that the PoA is a better solution in such centers of extraction and production of centralized currencies. It suggests that the PoA becomes the protocol that will ensure that "A validator must be personally identified and verified on the platform, making them a reliable node. Users who confirm their identity earn the right to validate blocks on the chain. The cryptographic awards they receive are public, as well as the malicious actions taken; this means that individuals have their personal reputation at stake when they act to protect the network. "

However, critics are quick to point out that the PoA is limited in its approach as it does not focus on computing power during the cryptocurrency mining process.

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